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Major Support & Resistance (pivot points – explained):
Pivot Point: 6711; Support 1, 2 & 3: 6674, 6641, 6604; Resistance 1, 2 & 3: 6744, 6781, 6814
The test of the festive lows yesterday was quite significant in highlighting the potential for the index to correct after its strong December gains. Then again falling daily momentum had been prepping us for this for several days. Is the short-term sideways pause under threat?
The fact sentiment has recovered overnight despite a drop in Chinese exports and poor Alcoa results is also significant, suggesting global confidence (exports lower on fake invoicing crackdown?) and offsetting yesterday’s weakness from cautious Fed minutes, reinforced ECB dovishness, some poor retail results and lack of commitment ahead of NFP.
The graphs look a little different today with short-term horizontal support being replaced by falling trendlines. Of note is the run of falling highs at 6735 which could impede gains. All eyes on the famous US Non-Farm Payrolls (NFP) this afternoon. Will it surprise to the upside like ADP and justify the Fed’s beginning of the end of QE3? Or will NFP disappoint and reignite uncertainty as to whether the US is in fact ready for less stimulus? See you at 1.30pm.
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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