Daily Markets Briefing: STI down 0.7%

Will today’s tone remain more downside biased?

OCBC Investment Research said:

The further retreat on Wall Street overnight and the poor Nikkei start (down 0.9% now) could cue the local bourse to another negative opening this morning.

After plunging nearly 130 points over 6 sessions (with another 0.7% loss yesterday), the STI is barely hanging just above its 2-year vital uptrend support.

And with today’s tone likely to remain more downside biased, we could potentially see this key uptrend support (also the 3050-3060 immediate gap support) being tested.

Below that, the subsequent base lies at the 3000 key psychological support. On the upside, 3120 is still the immediate support-turned-resistance, followed by the next hurdle at the 3160 level.