Daily Markets Briefing: STI down 0.1%

Another pullback is on the cards today.

According to OCBC, the STI has fallen below the key 3357 resistance-turned-support yesterday; failure to regain this level could see the index easing back towards 3302 or even 3291.

Here's more from OCBC:

Following the muted showing on Wall Street overnight and the usual profit-taking ahead of the weekend, we believe that risk is skewed towards the downside for now; Nikkei has opened 0.4% lower this morning.

We also note that the daily technical indicators have turned a tad more negative, reinforcing our view that the market looks toppish above 3375.

As before, we advise caution with regards to the recent run-up in penny stocks, given the lack of fundamentals.