Daily Markets Briefing: STI down 1.3%

Index poised to correct further towards the 3130 mark.

OCBC Investment Research said:

The further pull-back on Wall Street overnight is likely to keep the local bourse on the back-foot this morning.

After plunging nearly 1.3% yesterday, the STI is now poised to correct further towards the 3130 resistance-turned-support next.

And with the MACD converging bearishly towards its signal line as well, this suggests that the downside momentum could be building up.

Below the 3130 initial base, we see the subsequent support at the 3070 resistance-turned-support. On the upside, 3180 is now the newly established support-turned-resistance, with the next obstacle pegged at the 3270 key peaks.