Daily Markets Briefing: STI down 0.6%

Rebound likely thanks in part to higher US index futures.

OCBC Investment Research said:

Despite the continued retreat on Wall Street overnight, the higher US index futures and the positive Nikkei start could lend some support to the local bourse this morning.

After pulling back more than 0.6% yesterday, the STI could be poised for a rebound back in the direction of the 3260 resistance.

Meanwhile, the daily MACD is still trending higher steadily, suggesting that the upside momentum remains fairly intact.

Above the 3260 obstacle, the next hurdle lies at the 3320 support-turned-resistance. On the downside, 3200 is still the immediate base, followed by the next support at the 3155 minor trough.