Daily Markets Briefing: STI down 0.16%

Brace for a pullback today.

According to OCBC, rebound on Wall Street overnight should bring some relief to the local bourse, especially with the STI starting to look oversold after the recent sell-down.

Here's more from OCBC:

However, the ability of the index to sustain above 2900 remains in doubt – we saw it spike to an early intraday 2906 high yesterday before closing 0.2% lower. As such, we could still see investors using the technical rebound to exit stale longs.

On the downside, we peg the immediate support at 2860, but we think that STI is only likely to find some moderate support around 2800.

On the upside, we peg the immediate hurdle at 2900; but we continue to see 3000 as a pretty tough hurdle to clear.