Daily Markets Briefing: STI down 0.9%

Don’t expect a turnaround today.

According to OCBC, the continued weakness on Wall Street Friday could still weigh on local sentiment, leading to further profit-taking in the near-term.

Here’s more from OCBC:

The STI, which closed 0.9% lower on Friday, has also just triggered a parabolic sell signal, which could potentially send the index back towards 3297 (mid of Bollinger Band).

While the daily technical indicators are not overly bearish yet, some degree of caution is setting in.

And to get the bulls back in, the index would need to trigger the parabolic buy signal around 3387 – a fairly tall order given the current sentiment.

For now, selling into strength may be the better strategy, while a potential buying-in position should be closer to 3225 (lower Bollinger Band).