Expect muted gains today.
According to OCBC, the muted Wall Street close overnight and the weaker US index futures could continue to keep local sentiment cautious, especially in wake of the bombings in Brussels yesterday.
Here's more from OCBC:
As noted previously, the STI’s recent run-up is facing a formidable near-term top around 2900; continued failure to convincingly sustain above this level is likely to see the index slipping back towards the 2800 support.
While the upcoming 2016 Budget (out Thursday afternoon) will be keenly watched, market watchers do not expect much in terms of goodies; this as the government may need to conserve their bullets in case of a deeper slowdown down the road.
Above 2900, we peg the next key hurdle at 2918 (38.2% retracement of plunge from 3549 to 2528).
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