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Equity markets are positive this morning, doing their best to ignore traditional caution ahead of the US monthly jobs report. This is understandable given that the report is unlikely to deliver anything that allows the Fed to deliver more policy normalisation before next year. Which means lower US rates for longer. And even more accommodative global policy when you factor in the BoE cranking up stimulus this summer to counter uncertainty linked to the Brexit vote. Which is good for market risk appetite.
The NFP number itself is almost certain to deliver a strong bounce from its weakest in six years (38K) to regain its 150-200K average, but we caution that revisions are always volatile (May could yet be revised up significantly). Focus should (wishful thinking?) thus be on Wages Growth for any hints at inflation and what is a still a worryingly depressed Participation Rate. But you never know what the report will throw up, only days before we move into US earnings season with Alcoa and the big Banks reporting next week. Here again already? How time flies.
The UK 100 has bounced from 6510 to regain the middle of its 6500-6580 range of the last 36 hours. The DAX30 has bounced from 9400 to maintain rising support and re-visit 9500. Wall Street/Dow Jones futures have moved right into the 17950 apex of a narrowing trend. Breakout or breakdown? Gold has found its 2-day downtrend slowed up by rising support at $1355. A breakdown would vindicate improved risk appetite.
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The UK 100 has bounced from 6510 to regain the middle of its 6500-6580 range of the last 36 hours. Higher or lower? Over the longer term, so long as the breakout at 6430, we are still on for a bullish inverse head and shoulders reversal to 7100.
Watch levels: Bullish 6565, Bearish 6535
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 DAX30 has bounced from 9400 to maintain rising support and re-visit 9500 again. Can the rebound take the index back to recent highs of 9800?
Watch levels: Bullish 9510, Bearish 9435
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 moved right into the 17950 apex of a narrowing trend. Breakout or breakdown?
Watch levels: Bullish 17945, Bearish 17915
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 has found its 2-day downtrend slowed up by rising support at $1355. A breakdown towards $1350 would vindicate improved risk appetite.
Watch levels: Bullish $1360, Bearish $1353
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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