Daily Markets Briefing: STI up 0.6%

But expect a significant retreat this morning.

According to OCBC, the 2% decline on Wall Street overnight is likely to spook the local bourse to a significant retreat as well this morning.

Here’s more from OCBC:

As such, we could see the STI reversing yesterday’s 0.6% gain and fall back in the direction of the 3360 newly established resistance-turned-support.

Should this immediate base be breached, the index is likely to slide further towards the 3310 resistance-turned-support next.

On the upside, 3400 key psychological level is now the immediate hurdle, with the next obstacle lying at the 3460 key peak.