Expect muted gains today.
According to OCBC, fresh weakness on Wall Street overnight could weigh further on already-battered local sentiment; the Nikkei is already down 0.9% in early trade.
Here’s more from OCBC:
Although the STI rebounded as much as 1.5% higher yesterday, it lost almost all of its gains to end just flat – one reason for the reversal we think is due to the continued inability of the index to retake the key 2600 level.
While we peg the initial support at 2521 and also 2500, we believe that the much stronger support would emerge closer to 2424, given the bearish technical indicators.
On the upside, 2600 remains the key hurdle.
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