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Major Support & Resistance (pivot points – explained):
Pivot Point: 6730; Support 1, 2 & 3: 6692, 6666, 6629; Resistance 1, 2 & 3: 6755, 6792, 6818
The New year feel-good factor has taken another kick but shows signs of taking it in its stride again, off its worst levels. The culprit is a broker report citing fears of US equities being overvalued (on almost every metric) and earnings season potentially failing to justify them (mounting negative pre-announcements). After Alcoa disappointed last week, it is the turn do the US banks update today (JPMorgan, Wells Fargo).
Optimism also dented by Fed comments suggesting continued tapering based on the overall macro picture and unperturbed by an NFP miss. Also worrying is the possibility that the unemployment rate is overstating labour market progress, undermining some of the recent market excitement than had grown around the Fed’s decision to taper and belief in economic recovery. Markets again worried about the possibility of accelerated tapering while economy not ready.
Having failed to test festive highs 6770 yesterday and breached rising lows from mid-December at 6720 last night, we have seen a test below 6700 this morning. We are, however, back up around the breakdown level of 6730 as bulls take control. A break above this would be required to regain 6770 to rekindle the chance of a breakout and resumption of the long-term uptrend after a lengthy festive sideways pause . Daily momentum remains negative with the failed breakout itself late last week. With very shallow falling highs, is a bigger correction on the cards or is this just another blip?
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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