Daily Markets Briefing: STI down 0.2%

Expect a small rebound today.

According to OCBC, the STI could potentially be “hammering” out a near-term bottom around the recent 3310 lows.

Here’s more from OCBC:

As such, we may see a modest technical rebound after a cumulative loss of some 1.6% over the last four sessions.

However, we note that the daily technical indicators have turned decidedly more negative, suggesting that selling into strength may still be the more appropriate strategy for now.

We peg the immediate hurdle at 3372 (upper Bollinger band), ahead of 3400 psychological resistance. Note that a bullish parabolic buy signal sits around 3382.

On the downside, the immediate support remains around 3303 (middle of Bollinger Band, 30-DMA), ahead of 3235 (lower Bollinger Band).