Daily Markets Briefing: STI down 1.51%

Expect another pullback today.

According to OCBC, while the firmer Wall Street close overnight should be a minor plus, the market could still see more selling on strength should the index fail to clear 3100 yet again.

Here's more from OCBC:

No doubt the market looks oversold, but the daily MACD shows that the bearish momentum remains strong. 

Furthermore, the local market’s fragile sentiment was evident from the way the sell-off came once the STI broke the initial 3100 support yesterday, led by banks and other blue chips; breath of the market was also very negative, with nearly 3 losers to every 1 gainer.

On the downside, we peg the initial support at 3053, ahead of the key 3000 psychological level.