Daily Markets Briefing: STI down 0.5%

Expect a turnaround today.

According to OCBC, the strong rebound on Wall Street overnight should bring much-needed relief to the battered local sentiment this morning.

Here's more from OCBC:

Although the index closed 0.5% lower yesterday, it managed to stay above the key 3221 support (38.2% retracement of 2953-3387 rally).

And with market looking way oversold as it is, this sets the stage for a technical rebound.

However, we believe that investors may use the opportunity to unwind stale positions, given that the medium-term outlook is still quite negative; this as the 30-DMA has cut down on the 50-DMA and both are converging lower towards the 100-DMA, which is also the initial hurdle at 3299.