Daily Markets Briefing: STI down 0.3%

Index poised for a technical rebound.

OCBC Investment Research noted:

The sharp rebound on Wall Street last Friday night and the strong Nikkei start (up 3% now) are likely to boost local sentiments this morning.

After showing some signs of moderating its decline with just a 0.3% loss in the last session, the STI looks poised to initiate a technical rebound now.

However, we note that the worst might not be over yet as the rebound could still potentially invite investors to sell into strength thereafter.

On the upside, 3240 (key support-turned-resistance) is now the immediate obstacle; followed by the 3270 minor support-turned-resistance.

For now, we still peg the immediate support to the 3160 level (key troughs), with the next base lying at the 3100 key psychological level.