Daily Markets Briefing: STI down 0.7%

Expect modest gains today.

According to OCBC, the mostly positive closing on Wall Street overnight and the slightly firmer US index futures could provide a much needed boost to the local bourse this morning; the Nikkei is up 1.1% in early trade.

With the STI down another 0.7% yesterday on a 4-day losing streak, it does look due for a technical rebound soon; we note that the index is probably also going to get a much firmer support from the uptrend line (currently around 2867).

Here’s more from OCBC:

However, as the daily MACD has just cut down, the overall tone could remain fairly cautious, and limit the extent of the rebound.

Hence it may find it tough to convincingly clear the key 2900 hurdle just yet; below 2867, we peg the next support at 2843.