Daily Markets Briefing: STI down 0.4%

Expect limited gains today.

According to OCBC, the significant recovery on Wall Street last night might provide some optimism for the local bourse this morning, but gains are likely to be limited.

“However, any upside could be limited as the STI is still trending lower steadily at the moment; this after registering a 0.4% loss and violating the 3250 support yesterday,” noted OCBC.

Here’s more from OCBC:

The S&P 500 and the Dow Jones Industrial Average closed at record levels on Monday, as economic data continued to point to an improving economy; a manufacturing index showed the strongest level of new orders since the end of last year.

We still see a high possibility of the index sliding towards the 3220 key support for a test in the days ahead. Beyond that, the next support lies at the 3180 key trough.

On the upside, 3250 is now the immediate support-turned-resistance, with the next hurdle pegged at the 3280 recent peak.