Daily Markets Briefing: STI down 0.9%

Expect a rebound today.

According to OCBC, the STI’s rebound was short-lived after the index ended 0.9% lower yesterday, making it the 11th losing session in 12; but the strong rebound on Wall Street overnight should bring back some cheer to the local bourse.

Here's more from OCBC:

But as before, the index needs to convincingly retake the 100-DMA support-turned-resistance, currently hovering around 2763; failure to do so could see more medium-term downside risk.

However, we note that there is still some distance away before the index can trigger the parabolic buy signal around 2838; and this could also continue to weigh on the market.

On the downside, we peg the initial support at 2740, ahead of the next key support at 2700.