Daily Markets Briefing: STI down 1.1%

Index likely to slide towards 3322 mark.

According to OCBC Investment Research:

Renewed weakness on Wall Street is likely to weigh further on the already cautious local sentiment this morning; Nikkei now down as much as 2.8%.

As such, the STI, which closed 1.1% lower yesterday, could continue to slide towards 3322 (minor recent peaks) albeit with a minor speed bump around 3353 (lower Bollinger Band).

The formation of a near-term top and the daily technical indicators suggest that the bears have the upper hand; at least until the index can trigger a parabolic buy signal around 3457.

And if 3322 fails to hold, we may see a deeper pullback towards 3240.

On the upside, we peg the initial hurdle at the 3400 psychological level.