Brace for a pullback today.
According to OCBC, with Wall Street shut overnight and the US index futures drifting lower, the local market could struggle for direction this morning; but eyes will be on the China data due out this morning.
However, with market looking heavily oversold (the STI fell 11% over the last 12 sessions), it may be due for a technical rebound soon, OCBC said.
Here’s more from OCBC:
Having said that, the index may find it tough to make significant headways, given that near-term positive catalysts are few and far in between.
Once again, we think that selling into strength or unwinding stale longs could remain the focus for now, especially if the STI fails to retake the key 2600 level and it could then bring the next support at 2521 into play.
Above 2600, we peg the next resistance at 2640, then 2680, ahead of the key 2700 hurdle.
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