Daily Markets Briefing: STI up 0.01%

Expect muted gains today.

According to OCBC, renewed weakness on Wall Street overnight could spook local sentiment and send investors heading for the exit, especially after the STI’s surprising late rebound yesterday.

Here’s more from OCBC:

We also note that despite the late rebound, the losers actually still outnumbered the gainers by 1.3:1, suggesting that buying was concentrated on a few select stocks.

Hence, the odds are back on for the index to retrace lower towards the initial 2850 support; breaking which, the next support at 2800 beckons.

On the upside, 2900 is proving to be quite a formidable hurdle; perhaps much too formidable for the index to clear at the moment, given that the daily indicators are not looking too positive.