Daily Markets Briefing: STI down 1%

What could be the implications?

According to OCBC, the pull-back by the US indices overnight and the weak Nikkei start (down 0.4% now) are likely to weigh on local sentiments this morning.

OCBC said that after a rather sharp 1% retreat yesterday, the STI is now hovering just above its 2-year vital uptrend support; should this uptrend line be violated, there could be further bearish implications thereafter.

Here's more from OCBC:

For now, the 3050-3070 gap zone is still likely to offer a firm immediate support to the index in the near term.

Beyond 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.