Daily Markets Briefing: STI down 1.57%

Expect muted gains today.

According to OCBC, although the STI ended off early lows to close 1.6% lower, the muted showing on Wall Street overnight could continue to keep local sentiment pretty cautious; the Nikkei is closed for a national holiday today.

Here’s more from OCBC:

As before, as long as the STI fails to convincingly regain the key 2600 level, the market is likely to continue to drift lower towards 2521 in the near term; but we peg the much stronger support at 2424.

While we are not ruling out any potential technical rebound along the way, investors may continue to use these bounces to unwind stale longs.

Above 2600, we peg the next resistance at 2650 ahead of the strong 2700 hurdle.