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Major Support & Resistance (pivot points – explained):
Pivot Point: 6733; Support 1, 2 & 3: 6704, 6684, 6655; Resistance 1, 2 & 3: 6754, 6783, 6803
After all that waiting for the Fed FOMC minutes, the message is that tapering is appropriate given economic improvement but still requires caution (measured pace, some not convinced, inflation a worry).
Markets will like fact the Fed is not looking at a speedy exit, and rates/policy to stay accomodative for a good while longer, but with plans to reduce extraordinary stimulus having been taken as a sign of economic recovery, market optimism may now itself need tapering given the Fed caution, hence the mixed US finish and Asia uncertainty overnight.
With daily momentum now negative, and 3-day lows being tested, it looks like we are destined to revisit the festive lows of 6695. Bulls will be hoping this level hold to keep the December 5.9% rally alive with Christmas/New Year just being a pause for breath. Bears on the other hand may already be eyeing the potential for a correction back to 6615 and maybe even 4yr rising support at 6500.
I remain optimistic for 2014 and the continued market recovery, however, I am conscious that we may need a more attractive base level from which to resume the long-term uptrend. Nothing goes up or down in a straight line. Remember Short-term trends are what make up the long-term. That’s what makes markets interesting.
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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