Daily Markets Briefing: STI down 0.69%

Prepare for a pullback today.

According to OCBC, the mixed showing on Wall Street last Friday is unlikely to provide much direction to the local bourse this morning.

While the STI ended 0.7% lower last Friday, the market does look like it is due for a pause and some consolidation before heading higher once again; this as near-term technical indicators look slightly stretched, but the medium-term outlook remains relatively positive.

According to OCBC:

Overall volume eased 9% to 1.5b traded, while average value/unit also slipped 9% from S$0.75 to S$0.68; losers led gainers 275 to 183.

For now, we peg the initial support at 2919 (38.2% retracement of plunge from 3549 to 2528), ahead of the key 2900 support; initial hurdle is at 2950, while the key one remains at 3000.