Daily Markets Briefing: STI up 0.1%

A pullback is expected today.

According to OCBC, following the muted showing on Wall Street overnight, the local bourse could continue to see profit-taking as investors lighten their positions ahead of the weekend.

Here's more from OCBC:

In any case, the STI looks to have run out of steam after the strong rebound from 3149 to 3360 over the last few weeks.

Both the daily MACD and stochastic indicators have turned bearish – more importantly, after the index peaked at 3360.

For now, the index could see a pullback towards 3279 (38.2% retracement of the recent rally), especially if the immediate 3296 support (30-DMA, 100-DMA) gives way.

On the upside, we peg the immediate cap at 3335 (recent peak), ahead of 3360.