Daily Markets Briefing: STI down 0.6%

What could this imply?

According to OCBC, with US indices rebounding overnight and the Nikkei having a strong start (up 2% now), this is likely to provide some inspiration to the local bourse this morning.

OCBC said that despite retreating as much as 1.7% intraday yesterday, the STI regain much of those losses to end the day just 0.6% in the red; this suggests that investors have started picking up shares on bargain hunting.

Here's more from OCBC:

And with today’s tone likely to improve further, we could see the index recovering further towards the 3130 minor support-turned-resistance.

Above that, the next hurdle lies at the 3180 region (3-month downtrend resistance). On the downside, 3070 key trough is now the immediate support, with the next base pegged at the 3000 key psychological level.