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Major Support & Resistance (pivot points – explained):
Pivot: 6581; Support: 6555, 6519, 6494; Resistance: 6617, 6643, 6678
Little change to trends described yesterday with rising trendline of support from 8 Jul intact, narrowing the rising channel from end-June with traders eying a revisit of last week’s 6650 spike. Pause around 6650-6600 could be enough to offset the sharp 11% gains in 3 weeks and help fuel another up-leg but beware quieter summer volumes.
The renewed test of 6600 shows market desire for the recovery to continue, however, muted activity suggests traders reverting to familiar wait-and-see-for-Bernanke-and-QE3, needing the latest update to decide whether tapering is now closer or further away.
For me nothing has changed. Fed has goal if data keep improving, but retains the flexibility to change things if data disappoints, even hinting that even if employment came down as hoped, he could still change things depending on inflation. As I’ve said several times, spiel to remain accommodative the timetable that scares everyone is sure to change. Fed s just managing expectations with confusing talk to avoid bubbles.
China data behind us for a while longer, with focus back on US (lots data today), although plenty of European data and bond auctions and well as peripheral woes to keep things spicy.
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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