Daily Markets Briefing: STI up 0.3%

Today's tone likely to deteriorate, says analyst.

OCBC Investment Research said:

With US stocks pulling back broadly after the FOMC minutes, this is likely to dent local sentiments as well this morning.

Despite rebounding a mild 0.3% yesterday, the STI still closed significantly lower than its intraday high; this suggests that investors are rather cautious about pushing the index higher at the moment.

And with today’s tone likely to deteriorate, we could see the index heading lower in the direction of the 3425 recent trough; the subsequent base lies at the 3405 key resistance-turned-support.

On the upside, the immediate resistance is still pegged at the 3485 peak, followed by the 3500 psychological hurdle.