Daily Markets Briefing: STI down 2.9%

Another pullback is likely today.

According to OCBC, although Wall Street staged a late recovery to end mostly flat to tad higher, the US index futures are back in the red, suggesting that the overall tone is likely to remain somewhat muted.

Here's more from OCBC:

While the STI, down 2.9% yesterday, looks heavily oversold, any near-term rebound is likely to be quite shallow and we could see investors using it to exit stale longs.

Currently, the STI is holding just above the initial 3053, while the next key support remains at 3000 – a breach of this would not bode well for the index.

On the upside, we peg the initial hurdle at 3100 and the next at 3150.

Technically, the local banks also look heavily oversold and should see some form of technical rebound in the near term.