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Equity indices are in the green for the new week, with investors renewing their subscription to the mentality that ‘bad data is good data’. This comes in the wake of Friday’s disappointingly weak US May Jobs report, in the sense that it (coupled with some other poor US data points of late) is likely bad enough to prevent a US interest rate hike this summer, but not so bad that it puts the US economic recovery in jeopardy. So welcome to the latest ‘Yay! Lower rates for longer’ rally boosted by a weaker US dollar giving a fillip to the commodities space and risk assets in general. After all that Fed hawkishness of late (speakers, minutes) which took markets from their highs, could Fed Chair Janet Yellen’s speech this evening send us back there via a gentle backtrack and more dovish undertones? The Brexit debate intensifies but markets appear unperturbed.
The UK 100 has broken above 6250 and is in the midst of a bullish pennant towards 6290 end-May highs. The DAX30 has rebounded from resistance-turned-support at 10100. Wall Street/Dow Jones futures have bounced off 17800 and could be forming a 6-week bullish inverse head & shoulders reversal back to 2016 highs. Gold is holding above $1240 after sharp US jobs report inspired gains of Friday.
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The UK 100 has broken above 6250 and is in the midst of a bullish pennant towards 6290 end-May highs. The Bulls may also be concentrating on the potential for us to have begun a bullish inverse head and shoulders reversal that formed over the last 36 hours.
Watch levels: Bullish 6270, Bearish 6240
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 has rebounded from what looks to be resistance-turned-support at 10100. Still in longer-term narrowing pattern. Bounce back towards recent highs? EUR strength from USD weakness is not proving the usual hindrance.
Watch levels: Bullish 10160, Bearish 10080
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
Wall Street/Dow Jones futures have bounced off 17800 and could be forming a 6-week bullish inverse head & shoulders reversal back towards 2016 highs, possibly even beyond.
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’s is holding above $1240 after sharp US jobs report inspired gains of Friday. Could a dovish speech by Janet Yellen this evening send the USD even lower and the yellow metal even higher? Bullish flag pause?
Watch levels: Bullish $1251, Bearish $1238
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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