Daily Markets Briefing: STI down 1.2%

Brace for a pullback today.

According to OCBC, following the pullback on Wall Street overnight, the STI is likely to extend its 1.2% slide from yesterday, as more investors adopt a risk-off stance.

Here's more from OCBC:

As before, the technical indicators have turned near-term negative, with the daily MACD still sliding towards the centre line after the recent cut down and the RSI just falling past the 50% mark.

Hence, with the break of the initial 2850 support, the index could well be making a test of the key 2800 level soon; while 2900 remains the key hurdle for now.

Overall volume slipped 21% to 1.39b units traded, while total value dropped 24% to S$1.07b; but average value/unit was down just 4% at S$0.76.