Brace for a pullback today.
According to OCBC, although Wall Street ended higher overnight, it could be playing “catch up” as the US markets were shut on Monday; US index futures have started to turn down, and the Nikkei is also currently down 0.2% in early trade.
And as expected, we saw the STI make a test of the key 2600 support yesterday, which held up, hence resulting in the 1.4% rise.
Here’s more from OCBC:
But the recent strong gains of nearly 5% over the last three sessions could be due for a correction, especially if the STI fails to clear the next hurdle at 2650.
We may see another test of the key 2600 support; and as long as this level holds, the STI could still rise further towards 2700 thereafter.
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