Expect some profit-taking today.
According to OCBC, the firmer closing on Wall Street overnight could bring some much-needed relief to local investors this morning (the Nikkei has opened up 1.1%), especially after the sell-off in the STI yesterday, where the index gave up all of its gains and more to end 0.6% lower (likely spooked by the sharp fall in China).
Here’s more from OCBC:
However, we could see a repeat of yesterday’s selling into strength if the index struggles to clear the initial 2650 hurdle later; this as the medium-term technical picture continues to look a tad negative.
While the index managed to recover back above the key 2600 support yesterday, the price action was less than convincing, suggesting that another strong break could send the STI sliding back towards 2521.
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