Daily Markets Briefing: STI up 0.6%

Will the index keep its momentum today?

OCBC Investment Research said:

The pull-back on Wall Street overnight is likely to spook the local bourse to a similar retreat this morning.

Despite recovering another 0.6% yesterday, the STI has formed a spinning top candlestick; coupled with the extended rally we have seen in recent days, this suggests that a bearish reversal could be in the makings.

Should the index gap open lower at the open this morning, we could see it sliding further south towards the 3070 resistance-turned-support.

Beyond that, the subsequent base lies at the 3030 support. On the upside, 3120 is now the immediate support-turned-resistance, followed by the next hurdle at the 3150 minor peaks.