Daily Markets Briefing: STI up 1.6%

Expect a pullback today.

According to OCBC, the pullback on Wall Street overnight could spark a similar bout of profit-taking in the local bourse this morning, especially after the recent 2-day rebound of nearly 3.7%; Nikkei has opened 0.1% down.

Here's more from OCBC:

Also note that while the STI gained another 1.6% yesterday, it did not quite manage to test the key 2900 hurdle; hence a continued failure to do so may encourage bears to set up new shorts.

Nevertheless, the daily technical indicators remain somewhat positive, suggesting that we could still see investors looking to buy on dips – we peg the initial support at 2869, ahead of the key 2800 level.

Above 2900, the next key resistance remains at 3000, with just a mild speed bump around 2950.