Daily Markets Briefing: STI down 0.2%

Don’t expect good news today.

According to OCBC, the STI could continue to head south following the decline on Wall Street overnight.

Here’s more from OCBC:

Although the STI managed to hold above the key immediate support at 3303 (30-DMA, mid of Bollinger Band), that support is likely to be given another test today.

A break could send the index back towards 3292 (61.8% retracement of recent 3234-3387 rally) in the near term, possible even 3238 (lower Bollinger Band).

On the upside, we peg the immediate resistance at 3329 (38.2% retracement of 3234-3387 rally), ahead of 3372 (upper Bollinger band).

While volume has picked up yesterday, it remains dominated by the penny stocks, with more investors seen heading for the exit.