Daily Markets Briefing: STI down 0.4%

Index likely to stage a modest technical rebound today.

OCBC Investment Research said:

The STI ended 0.4% lower yesterday, after concerns over the weakening SGD and increasingly muted China prospects overshadowed the positive close on Wall Street on Friday.

But on a more positive note, the index managed to close above immediate 3149 support (centre of Bollinger band); and this could provide a near-term base for the STI to stage a modest technical rebound.

However, unless it can convincingly trigger a parabolic buy signal around 3204, we could still see selling into the strength, especially if the index fails to even clear the 3200 hurdle.

And if that happens, the STI could head back towards 3100 (psychological support) and even 3072 (lower Bollinger band).