Daily Markets Briefing: STI up 1.8%

It could have 'exhausted' its uptrend.

According to OCBC, the pullback on Wall Street overnight is likely to cue the local bourse to a negative start this morning.

After another 1.8% gain yesterday that added up to a more than 120 points surge over the past week, the STI could have exhausted its upside move in the near term.

Here's more from OCBC:

And with today’s tone likely to turn more downside biased and the index already nearing its key 3270 peak resistance, we could see selling pressure heading back into the market.

This could send the index pulling back towards the 3220 resistance-turned-support, while the next base lies at the 3180 support. Meanwhile, the subsequent obstacle is pegged at the 3330 support-turned-resistance.