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Major Support & Resistance (pivot points – explained):
Pivot: 6571; Support: 6535, 6509, 6473; Resistance: 6598, 6634, 6660
The rising trendline of support from Jul 8 has been breached after the index slowed up at 6600 yesterday and markets moved into wait and see mode ahead of the latest communication from the US Fed Chairman. However, we are still trading sideways, and in the middle of the recent 6530-6600 range, which reinforces the chances of this being merely a pause for equities after gains of 10% in just a few weeks.
With sideways action since July 10, even after the Fed’s reiteration of easy monetary policy and tapering of QE3 only if data keep improving, and the new revelation that even if employment does improve QE3 could stay as is if inflation disappoints, the question now is whether Bernanke can add anything new this afternoon to give the rally a second wind. We’re not expecting any surprises in the testimony text (unlikely to stray far from last communication) – if there is any excitement, like last time it’ll be in the Q&A.
Will the Fed Chairman play his market cards right for the markets? I can hear Brucie shouting now: “Higher, or Lower?”
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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