Daily Markets Briefing: STI down 0.44%

Brace for a pullback today.

According to OCBC, the pullback on Wall Street overnight could see the STI extending its correction; this after the index gave up early gains to end 0.5% lower yesterday.

But this did not come as a surprise, given that the local bourse looked toppish technically; and in our report yesterday, we noted that selling into strength could be a key theme this week, OCBC said.

Here's more from OCBC:

We also think overall tone could remain cautious ahead of the key earnings results, both in the US and here.

Overall volume was little changed at 1.43b units traded, likewise for total value and also the average value/unit of S$0.68.

For now, we could see the index pulling back further to test the key 2900 resistance-turned-support; and if it holds, we should see the current uptrend continuing.