Daily Markets Briefing: STI up 1.1%

Brace for a pullback today.

According to OCBC, although Wall Street ended higher last Friday, we could see some caution starting to creep into the local bourse, especially after the STI’s strong 1.1% surge; note that the US markets are closed for Memorial Day holiday tonight.

Here’s more from OCBC:

Hence, we could see the STI retracing back to test the key 2800 resistance-turned-support; as before, the inability to sustain above this level could bring the bears out to play again, given that the recent price action may have formed a potential bearish reversal signal.

Below 2800, we peg the next support at 2770; on the upside, the next hurdle is at 2828 (50-DMA), ahead of 2843.

And with the Jun school holidays upon us, we saw a 19% fall in overall market volume to 1.3b; although average value/unit jumped 46% to S$0.76, after the local banks added between 0.7% and 1.4% Friday; Bukit Semb +6.1%, JMH +2.3%.