Daily Markets Briefing: STI down 1%

Another sharp pullback is likely today.

According to OCBC, the sharp drop on Wall Street overnight is going to depress local sentiment further, with the Nikkei down 1.9% in early trade. This should see the STI slipping below the key 3000 support.

Here's more from OCBC:

And once the 3000 support gives way, we could potentially see the index slipping further towards the 2800 region in the coming months.

Having said that, a return to that level would entice longer term investors to re-enter the market.

In the meantime, we peg the next intermediate support around 2960.

On the upside, we continue to peg the initial key hurdle at 3053 ahead of the next strong resistance at 3100.