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Major Support & Resistance (pivot points – explained):
Pivot Point: 6746; Support 1, 2 & 3: 6724, 6693, 6671; Resistance 1, 2 & 3: 6777, 6799, 6830
That makes it 2 weeks for this pause in the uptrend. Macro data boosted US and global optimism yesterday taking us to the top of the recent range although we note it fell shy of testing the 27 Dec high of 6775, and indeed those more recently on of 2 Jan (6772) and 7 Jan (6770). Trouble at top? Daily momentum still pulling back to breakeven, but not a concern while we remain in the upper half of the recent range. Momentum to bounce?
The index is under pressure today from declines by big name defensives (BATS, IMT, NG, GSK,, ULVR, STAN, DGE, SAB, TSCO) offsetting strength from more risk–oriented counterparts (GLEN, BARC, LLOY, RBS). Potentially some gentle New Year rotation into risk rather than pessimism.
All eyes on Fed FOMC minutes this evening for more details on the path for QE3 tapering. Linear, front or back-end loaded? How split between MBS or T-Bills? Any other data thresholds? The wait for this may continue to hinder any breakout or breakdown, however, ADP jobs data (NFP warm-up) could rekindle optimism should it meet 200K expectations and boost hopes that NFP prints the same on Friday reinforcing recovery hopes and optimism and supporting the Fed‘s decision that one half of its mandate is on the mend and warrants stimulus reduction.
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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