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Equities sold off hard this morning as continued pressure on Chinese stocks rippled throughout the rest of the world. Declines checked for the time being with Chinese government intervention having brought the Shanghai Composite back to close positive. Nonetheless, it seems clear that the stock market there is incapable of supporting itself through market valuations alone.
A general lack of activity ahead of closely anticipated US inflation data and this evening’s FOMC meeting minutes failing to overcome what downward pressure remains following the Asia-Pacific close, with Wall St. futures down one half of a percent.
UK 100 now fully out of its continuation pattern while DAX down a massive 1.5% as Dutch MPs and the German parliament convene to vote on a third Greek bailout.
Gold still buoyant with fears of more market intervention by the PBoC sending risk off currency investors into the yellow metal, while currency volatility in Kazakhstan may actually be helping miners with operations there.
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UK 100 broken trading just north of early July lows 6430 having broken down below the 7-day falling channel floor. 6500 now likely resistance for any bounce.
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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 trading back inside a lower falling channel having staged brief breakouts in July and earlier in August. Potential for the index to find support around 10666 with the alternative being a continued pullback towards 10400 and below.
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 testing the floor of a rough rising channel with bulls hopeful it will hold, taking the index into the upper half of a 1-month sideways range. 17500 could prove a significant hurdle, however, as volumes remain low ahead of this evening’s FOMC minutes.
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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Gold’s still buoyant around $1122 with a lower significant high than last week’s $1126 indicating potential for consolidation ahead of another significant move supported by lack of volume ahead of FOMC minutes.
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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