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Major Support & Resistance (pivot points – explained):
Pivot: 6561; Support: 6525, 6478, 6442; Resistance: 6610, 6645, 6693
No second wind for equities from Chairman Bernanke, who stuck to his script saying Fed will continue to help with low rates and stimulus so long as economy needs it (good) but will taper IF data keep improving (good for economy, bad for lovers of cheap money) AND maintains flexibility to consider many variables and thresholds for consideration rather than targets for action (good, more chance of prolonging QE3).
On the whole positive, with lots of ifs, buts, depending ons etc, which leads us to keep believing the Fed knows it will have to maintain the status quo into next year and is merely managing expectations, giving a potential QE3 taper timetable starting this year to keep a lid on optimism and stop any asset bubbles which could be risky come the start of stimulus withdrawal.
The index’s sideways shift around 6560 continues, increasing the chances of this being a pause within the longer-term uptrend. Fibonacci shows us back above the 61.8% retrace of the May-Jun declines, after a test of the level yesterday. Full retrace still possible to 6875. What the driver is remains to be seen. Could Bernanke’s second testimony and Q&A do the trick, or must we now look beyond the Fed?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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