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Major Support & Resistance (pivot points – explained):
Pivot Point: 6482; Support 1, 2 & 3: 6430, 6345, 6294, ; Resistance 1, 2 & 3: 6566, 6618, 6702
An impressive 2.1% bounce yesterday from a 9-week low, suggesting Santa may have begun to spread some festive cheer combined with increased expectations of the Fed FOMC meeting leaving its QE3 stimulus programme at full throttle. But that’s where the bullish news ends.
Advances failed to follow through from the last of the US data yesterday (too good on aggregate? could it sway the FOMC’s decision on tapering?) and retracement increased from the European open. US not as strong as Europe. Uncertainty remains.
Daily momentum perked up off lows yesterday but never got above zero to confirm a reversal. Once again, ‘positive signs, but still multiple hurdles.‘ The correction holds – we remain in a falling channel. In fact the bounce never got back above the 6-month rising trendline we fell below last week.
There is potential for the index to hang around 6500 as participants hold off from committing to any direction before the Fed update tomorrow evening. Upside limited by falling highs at 6520. But note potential support from today’s pivot point 6480 representing 38.2% Fibonacci retracement from yesterday’s 6530 high and yesterday’s the 6465 breakout equating to 50%.
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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