Daily Markets Briefing: STI down 1.7%

Expect a technical rebound today.

OCBC said that after yesterday’s sharp tumble, the STI may get a modest technical rebound; although Wall Street ended lower last night, US index futures are showing a slight rebound; HSI futures are also showing a small recovery.

Here's more from OCBC:

But with Nikkei opening 1.6% lower, the overall tone is likely to remain cautious and selling into strength may still be the more prudent approach for now, especially after the STI slipped below two key supports yesterday.

As such, these will act as key hurdles in the near term – the first at 3291 and the other at 3302, while the main cap sits around 3357.

On the downside, the first support can be found at 3266, ahead of 3200.