Daily Markets Briefing: STI down 1.11%

Brace for a pullback today.

According to OCBC, fresh weakness on Wall Street overnight could send more local investors heading for the exit, especially ahead of the key US jobs report due tonight; the Nikkei is already down 1.1% in early trade.

Here’s more from OCBC:

Even though the STI ended 1.1% lower yesterday, the continued failure to regain the initial 2850 level could send the index back towards 2800, breaking which, the next support is likely found at 2770 (23.6% retracement of the plunge from 3549 to 2528).

Meanwhile, there was also a 44% surge in volume traded; but average value/unit dropped back to S$0.53 from S$0.69 the previous session; not surprising as traders took profit on the recent penny plays. 

Above 2850, we peg the key hurdle at 2900.