Daily Markets Briefing: STI up 0.2%

The rally will end soon.

According to OCBC, the continued gains on Wall Street overnight should help keep local sentiment buoyant. However, the STI’s recent rally looks to be running out of steam; this after the index closed just 0.2% higher, despite being up as much as 0.6% yesterday.

Here's more from OCBC:

As mentioned yesterday, the weaker-than-expected advance GDP estimate certainly took some shine off the index; also making it tough for the STI to mount a serious test of the 3357 hurdle any time soon.

Price-action may also have formed a potential reversal signal, suggesting a pullback if the STI fails to hold above 3311 (upper boundary of downtrend channel).

As before, the first support can be found at 3302, ahead of 3266.