Daily Markets Briefing: STI down 0.3%

Expect another pullback today.

According to OCBC, the sharp drop on Wall Street overnight could weigh further on already fragile local sentiment, especially after the STI failed to hold above the key 3053 support yesterday.

Here's more from OCBC:

As a recap, the STI gave up its early gains yesterday to close 0.3% lower on China jitters.

Although the daily RSI shows the market as heavily oversold, the MACD continues to look very bearish, suggesting that the test of the next key support at 3000 is a distinct possibility.

Should it break, we could see the index heading lower towards 2800 in the coming months.

On the upside, we continue to peg the initial key hurdle at 3053 ahead of the next strong resistance at 3100.