Daily Markets Briefing: STI down 1.8%

Immediate resistance pegged at 3425 mark.

According to OCBC Investment Research:

The muted reactions on Wall Street last Friday night could continue to keep local sentiment cautious this morning, especially with US shut for a holiday tonight.

Recall that the STI made a sharp 1.8% retreat last Thursday, likely in response to the 7% plunge by the Nikkei 225 index on the same day.

While we could potentially see a technical rebound by the index this morning, concerns are likely to remain.

For now, the immediate resistance remains at 3425 minor support-turned-resistance; the next obstacle lies at the 3465 recent peak.

On the downside, the immediate support is now pegged at the 3383 level (Thursday’s intraday low), with the subsequent base at the 3320 key resistance-turned-support.