Daily Markets Briefing: STI down 0.2%

Today’s tone likely to remain downside biased.

OCBC Investment Research said:

The pull-back by US stocks overnight could dent local sentiments further this morning.

Despite rallying as much as 0.8% intraday yesterday, the STI sunk to 0.2% loss instead by the close; this suggests investors are still very cautious about the current market outlook.

With today’s tone likely to remain a tad more downside biased, we could see the 3200 resistance-turned-support being tested. Should this base give way, the index will likely pull back further towards the 3155 minor trough.

On the upside, 3235 is now the immediate resistance (yesterday’s high), followed by the next hurdle at the 3260 key peaks.