Daily Markets Briefing: STI up 0.02%

Brace for a pullback today.

According to OCBC, continued gains on Wall Street overnight should provide a modest lift to local sentiment today, although the overall tone is still expected to remain fairly cautious; this as the US Fed is widely expected to announce a rate hike at the end of their 2-day meeting tonight.

For now, 2800 looks to be quite well protected; and with the RSI hovering just above the oversold region, we could potentially get a technical rebound soon, OCBC said.

Here’s more from OCBC:

But as before, the inability to convincingly clear the immediate 2850 hurdle could still see selling into strength and send the index back towards 2800.

A breach of this key support would not bode well and the index could slide back to 2740 before finding firmer support.

Above 2850, we peg the next resistance at 2876.