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Equities are mixed this morning with the UK’s UK 100 and US Dow Jones indices crawling northwards like the hopeless stimulus addicts they are, while the German DAX is just below the waterline on a slightly stronger Euro after this morning’s positive GDP print. A broader gauge of European equities, the Stoxx-600, is trading higher. This really is all about economic stimulus and cheap money. With Chinese data disappointing overnight, this merely gave cause for markets to expect a) even more stimulus in Asia Pacific and b) no more tightening by the US Fed. That in addition to UBS, JP Morgan and S&P forecasting UK interest rates to hit zero by February 2017 at the latest.
The UK 100 has rallied through the bullish watch level 6920, highlighted in our pre-market report this morning. The DAX 30 has pulled back below 10710 in anticipation of further Euro strength. Dow Jones futures have climbed up off rising support for another go at record highs. Gold is testing rising support from the end-May lows.
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The UK 100 is back in its May 2015 trading range with the ceiling at all-time highs. RSI overbought.
Watch levels: Bullish 6930, Bearish 6740
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.
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The DAX 30 has pulled back on a slightly stronger Euro, but has found support at the 50-hour moving average. Note falling highs on the RSI, with a break below its August support line likely to be indicative of a bigger pullback in the index.
Watch levels: Bullish 10750 Bearish 10670
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
Dow Jones futures are threatening new record highs this morning with the index in a bullish triangle formation, although a potential shorter term bearish rising wedge is a concern.
Watch levels: Bullish 18645, Bearish 18505
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
Gold is still in a narrowing range, although now testing the floor at 3-week rising support.
Watch levels: Bullish $1341, Bearish $1334
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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