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Major Support & Resistance (pivot points – explained):
Pivot Point: 6770; Support 1, 2 & 3: 6721, 6694, 6644; Resistance 1, 2 & 3: 6797, 6847, 6874
The FOMC statement delivered what we expected it terms of a less dovish message than markets had hoped for, accomplishing what it likely wanted in terms of taking the top off over-extension in equity markets. This was done by saying tapering still data-dependent and possible in Dec/Jan, well before market expectations of March, despite the fallout from the government shutdown.
The Fed may not really believe in December, but it’s more about managing expectations and preventing market complacency in QE3 easy money policy ad infinitum (or for a good while longer at least) creating a dangerous bubble which could burst and do more damage and require more help to repair. We don’t want to go their again. So sorry guys, the US data-watching remains in force.
UK 100 back from its foray above 6800 (8.1% rally from Oct lows), but found support at 6750 which coincides with Tuesday’s breakout, Wednesday’s support and a rising support trendline from 21 Oct. Another rising support trendline (intersecting) also sits at 6730 should weakness persist. We still see a correction as healthy and a pull back to major support at 6660 wouldn’t be disastrous before a resumption/renewed attempt at May highs 6875 and possible even all-time highs 6950. Are we set for another Santa Rally to get us there by Christmas?
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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