Daily Markets Briefing: STI down 0.3%

Expect muted gains today.

According to OCBC, the rebound on Wall Street Friday should provide a modest boost to the local bourse this morning; but renewed weakness in the US index futures may cap gains.

Here's more from OCBC:

As before, the STI’s inability to sustain itself convincingly above the immediate 2800 support-turned-resistance level could continue to weigh on sentiment.

For now, it may still be a tough challenge, given that the daily technical indicators are still quite muted and the medium-term technical picture looks somewhat negative.

Hence, a failed retest of this level could send the index slipping back towards 2762 quite easily; and we do not rule out a gradual drift down to 2600 over time if sentiments do not improve.

On the upside, we peg the next hurdle at 2850 ahead of the key 2900 level.