This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
No prizes for guessing what colour the major equity indices are this morning…
They are of course red, though showing some signs of a gutsy recovery attempt. Major risk-offness spurred by a 6th straight month of contraction in China’s manufacturing sector coming to bear amid general Asia-Pacific-wide weakness through a spate of currency devaluations (Yuan, Dong, Ringitt, Tenge) with varying degrees of market/state involvement.
Fed rate hikes? What Fed rate hikes? Did the FOMC even meet this week?! It did, but little’s being said about that today. Clearly there are more pressing issues such as the broad sell-off of risk assets which may or may not have been driven in part by US Federal Reserve rhetoric.
Greek PM Tsipras has resigned with snap elections confirmed for September. Again we ask – who or what will take over?
This morning, then, UK 100 has bounced up off of YTD lows 6198. Hardly surprising – YTD lows might be viewed by some as cheap. But it is Friday. Would you hold a position over the weekend in the current climate?
DAX has made an impressive 300pt resurgence from levels not seen since January. Again, 10,060 was probably seen as a buying opp.
Dow Jones futures also under pressure 100pts off its overnight lows while Gold is holding up around $1155.
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UK 100 bounced up off support at YTD lows 6200. Pure profit taking by market bears? Will we see another sell-off into the weekend?
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.
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Germany’s DAX similarly found support this morning and looks to be vying for a test of 10400. Will it manage this within today’s trading window?
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.
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US Dow Jones futures also pausing, having made a 100pt recovery since European markets opened. A recovery through 17000 possible, though 16940 resistance must first be overcome. Again, is there the time and the scope for that to happen today, or will it be risk-off into the weekend?
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
Gold’s found support at $1150 having pulled back from overnight highs $1169.
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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