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Major Support & Resistance (pivot points – explained):
Pivot Point: 6745; Support 1, 2 & 3: 6722, 6682, 6657; Resistance 1, 2 & 3: 6786, 6811, 6851
Even an NFP (Non-Farm payrolls) miss isn’t enough to derail 2013’s market confidence in the US economic recovery flowing into 2014. Equities are holding up thanks to a more sanguine focus on an improved US unemployment rate supporting the Fed’s decision to taper QE3 rather than the disappointing job adds and participation rate, which may be hostage to seasonal and structural swings, and belief/relief that asset purchase reduction is unlikely to accelerate.
The UK flagship index remains around festive highs and while we note the lack of progress over the last 2 weeks (and neutral daily momentum) there was strong support and recovery from 6680 last Thursday. Rising lows around 6720 have yet to be tested and could support the uptrend from mid-December. A break, however, could lead to a bigger correction.
US banks begin reporting Q4 results this week which could well influence global sentiment with most seen showing year-on-year declines in profits. While likely to have benefited from equity markets advances (more trading and underwriting) weakness at the more profitable fixed income division is set to highlight the tough environment for investment banking. Legal costs expected to remain a big feature too. Can the results keep markets rallying?
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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