Daily Markets Briefing: STI down 0.8%

Will today's tone improve?

OCBC Investment Researcher said:

The strong rebound on Wall Street last Friday night and the positive Nikkei start (up 1.2% now) are likely to boost local sentiments this morning.

As a recap, the STI finally cracked the 3200 psychological support after a 0.8% retreat in the last session; this suggesting a more bearish stance going forward.

But with today's tone likely to show some near-term improvements, we could potentially see the index heading back to test the 3200 (now support-turned-resistance).

A failure to overcome this level will see the index falling to the immediate base at 3155 (minor trough) next. Below that, the subsequent support lies at the 3120 key troughs.