Expect some losses today.
According to OCBC, the pullback on Wall Street overnight as well as the sharp drop in crude futures could weigh further on local sentiment this morning; the Nikkei is down 1.1% in early trade.
As expected, once the STI broke the key 2800 support, the sell-off was pretty rapid, resulting in the index closing 1.6% lower. Market breath has also turned a tad more negative, with losers outpacing gainers nearly 2.2 to 1.
Here’s more from OCBC:
And with the index unlikely to retake that support-turned-resistance level today, we could see it easing further towards 2700; but note that it could over-shoot on the downside as there is a gap around 2682-2713 that needs to be filled before we can see a firmer rebound.
Above 2800, we peg the next resistance at 2850.
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