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Major Equity markets back in the red this morning, displaying typical pre-US Non-Farm Payrolls caution – possibly more-so than usual – given the data’s significance less than a fortnight before the US Federal Reserve decides whether or not to raise interest rates. We still say ‘no’: jobs data may be solid but absent inflation and market volatility are just too much of a headwind.
The post-Draghi ‘I’m still prepared to do whatever it takes‘ rally has all but evaporated, focus returning to concerns such as China growth, deflation, market volatility and now whether Beijing will in fact pare back stock market support when bourses re-open on Monday after a welcome 2-day holiday for everyone. Bring on a return to the fun ‘n’ games next week.
UK Index retraced breakout above Aug trend-line of falling highs to test 6100 overnight support. DAX traded back from Sept highs but breakout above Aug falling highs holding. Dow pulled back all the way back to test 16200 and Aug trend-line of falling highs. Gold found support at $1122 after a Draghi-weakened EUR saw the USD rally to make the safehaven metal more expensive.
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UK 100 fallen back from test of 6200, maintaining trend of falling highs since 10 Aug. A break above this and 6260 late-Aug highs still likely needed to allow rally back to 6700. Rising lows still valid from 23 Aug.
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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Germany’s DAX back from a test of resistance at falling highs just south of 10,400 while support at rising lows still vulnerable with 14-period RSI neither oversold nor diverging with price action.
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 tickling rising lows from mid-Aug. Low volumes ahead of US Non-Farm jobs data this afternoon likely to keep the index within its consolidation pattern this morning, with a re-test of those mid-Aug falling highs dependent on the outcome thereof.
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 crawling along a rising support line and hugging the $1125 level with mild uncertainty and investor trepidation ahead of US jobs data delaying potentially significant moves until this afternoon.
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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