Daily Markets Briefing: STI down 1.6%

Index likely to head to the 3000 mark.

OCBC Investment Research said:

The sharp retreat by US stocks overnight and the poor Nikkei start (down 1.6% now) are likely to spook the local bourse to further losses this morning.

Following a sharp 1.6% plunge below the 3070 key support yesterday, the STI is now likely to head quickly to the 3000 psychological support for a test next.

Meanwhile, the MACD is still falling persistently; this suggesting that the downside momentum is fairly intact.

Beyond the 3000 level, we see the next base at the 2930 key trough. On the upside, 3070 is now the newly established support-turned-resistance, followed by the next obstacle at the 3130 resistance.