Expect muted gains today.
According to OCBC, although Wall Street ended higher overnight, the lower US index futures have pared the gains by over 50%; this following a weak outlook from Apple.
Here’s more from OCBC:
As such, we expect local sentiment to remain mostly cautious, and even though we may get a technical rebound (as market has fallen back into the oversold region), we could see investors again adopting a “sell into strength” approach.
As before, the continued failure to retake the key 2600 level could send the index sliding back towards 2500; breaking which, 2424 beckons.
For now, we peg the initial support at 2521, ahead of the key 2500; above 2600, we peg the next hurdle at 2650, with the key hurdle remaining at 2700.
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