Daily Markets Briefing: STI up 1.36%

Brace for a pullback today.

According to OCBC, the late pullback on Wall Street overnight could also spark a similar move here today, especially if the STI fails to test the next key 3049 hurdle (38.2% retracement of tumble from 3549 to 2740).

Here’s more from OCBC:

Note that the STI has already put in two sessions of strong gains of over 2%, making it ripe for profit-taking.

As before, the market may still be unconvinced if the STI has enough strength to sustain itself above the key 3000 support; a strong breach could send it back towards 2900.

Above 3049, we peg the next hurdle at 3100.