Daily Markets Briefing: STI down 1.3%

Here's what could lift the index today.

OCBC Investment Research said:

The rebound on Wall Street overnight and the stronger Nikkei start (up 0.4%) could lift local sentiments slightly this morning.

However, any gains are likely to be limited; the STI has started to show signs of failing a retest at the 3070 key support-turned-resistance following a 1.3% retreat yesterday.

Meanwhile, the MACD is also starting to deteriorate again; this suggests that the downside momentum could be building up.

For now, we still see the immediate base at the 3000 key psychological level, with subsequent base pegged at the 2930 key trough. Above the 3070 immediate obstacle, we see the next hurdle at the 3130 minor support-turned-resistance.