Daily Markets Briefing: STI down 0.5%

Today’s tone likely to turn downside biased, says analyst.

OCBC Investment Research said:

The pullback by both the US indices overnight and the Nikkei index (down 1.7% now) could dent local sentiments this morning.

As a recap, the STI failed in its attempt to conquer the 3230 key support-turned-resistance yesterday, and ended with a 0.5% retreat instead; clearly, investors are still very cautious about the market outlook.

And with today’s tone likely to turn downside biased, we could see the index pulling back further in the direction of the 3160 immediate resistance-turned-support.

Meanwhile, the next base lies at the 3100 key trough. On the upside, 3320 remains the subsequent key hurdle to overcome.