Expect more losses today.
According to OCBC, fresh weakness on Wall Street overnight could continue to weigh on local sentiment; the Nikkei has tumbled 2.5% in early trade.
Here's more from OCBC:
With the convincing breach of the key 2600, the STI is likely to resume its slide towards 2521 or even 2500; while we may still see some technical rebounds along the way, the market may continue to adopt a “selling into strength” approach.
As before, a much firmer support is likely to be found around 2424.
On the upside, we peg 2600 as the initial resistance ahead of the key 2650 level.
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