Daily Markets Briefing: STI down 1.5%

Index poised for a modest technical rebound.

According to OCBC Investment Research:

The rebound on Wall Street overnight is likely to provide some relief to the local bourse this morning; but caution is still expected to reign ahead of the key US job report tonight.

After plunging another 1.5% for the second consecutive session, the STI could be poised for a modest technical rebound around current levels today. However, we do not rule out potential selling into strength at higher levels.

For now, we have shifted the immediate support to the 3160 level (key troughs), with the next base lying at the 3100 key psychological level.

On the upside, 3240 (key support-turned-resistance) is now the immediate obstacle; followed by the 3270 minor support-turned-resistance.