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Equities in the red this morning as markets suffer from indigestion of a surprisingly dovish Fed update. Leaving US interest rates unchanged would normally be enough to see markets cheer at the prospect of cheap money for longer, but heightened concerns about external factors such as China, market volatility and deflation derailing a stateside recovery has resulted in an understandably cautious stance being adopted.
Markets wanted clarity (hike or stick) but the accompanying message is ‘clearly’ not what was expected. The decision to raise rates (Dec, Jan, later?) is no longer dependent on US data alone. What is going on round the world is equally, in fact more important, given last night’s reasoning. The great rate debate rolls on with the now familiar uncertainty unfortunately still in tow.
UK Index toying with breakdown from bearish head & shoulders top formation at 6150. DAX broken below Aug 25 rising support but holding above 10-day lows around 10100. Dow still in uptrend from End August, although back below yesterday’s 16700 breakout level. Gold has built on its $1100 breakout at to test $1135 helped by fed uncertainty and weaker USD.
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UK 100 sitting around 6150 neckline of potential bearish head & shoulders reversal pattern. A breakdown could see a revisit of 6050, while a bounce could see a return to 6250 or better.
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Possible support
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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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Germany’s DAX testing floor of recent sideways channel. Break or rebound?
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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US Dow Jones futures back below yesterday’s 16700 breakout level having been sent backwards by falling highs resistance dating back to late July. The level has since proved resistance. Uptrend from end-August still in play, but minor correction required?
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 breakout from downtrend has continued after the fed update. Potential for further gains towards recent highs, but beware potential Feb falling resistance at $1155.
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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