Brace for a pullback today.
According to OCBC, although Wall Street recovered most of its early losses to end mostly flat overnight, the sharp sell-off over the long weekend in the global bourses could weigh heavily on local sentiment when the STI re-opens for trading this morning; this especially after the unexpectedly strong 2.5% surge last Friday.
Here’s more from OCBC:
As before, we are likely to see the index easing back to test the key 2600 resistance-turned-support, where a convincing break could rapidly send the STI sliding back towards 2521 in the near-term.
On the upside, we peg the next resistance at 2650 ahead of the strong 2700 hurdle.
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