Daily Markets Briefing: STI down 0.1%

Expect another decline today.

According to OCBC, the significant pull-back on Wall Street overnight is likely to spook the local bourse to a negative start this morning.

Here's more from OCBC:

Meanwhile, local investors remained indecisive in their views; the STI swung between the positive and negative territories on numerous occasions yesterday before settling for a 0.1% loss.

With today’s more downside biased tone, we could see the index sliding back to test the 3330 (key 1.5-year uptrend support again).

A bearish break will most probably send the index quickly towards the 3280 key trough next. On the upside, we still see the immediate resistance at the 3390 support-turned-resistance.