Daily Markets Briefing: STI dup 0.4%

Expect muted gains today.

According to OCBC, continued strength on Wall Street could continue to keep local sentiment fairly upbeat today, although further gains may slow.

Here's more from OCBC:

While daily technical indicators are still looking somewhat positive, the STI is likely to face a tough test at 3357 level – has failed to clear it several times previously.

Failure again to clear that could lead to profit-taking, especially ahead of the long weekend on Wall Street (shut on Friday).

We peg the next hurdle at 3373 if the STI does overcome the stubborn 3357 level.

On the downside, we peg the initial support around 3323 (mid of Bollinger Band), ahead of the key 3302 support (61.8% retracement of the 3149-3549 rally).