FTSE 100 Resistance 6863 | Support 6835 | Asia climbs | Fed Jackson Hole

FTSE 100 Support 6838 6834 6807 6796 6785
FTSE 100 Resistance 6860 6863 6883 6899

Good morning. Fairly flat day yesterday with a couple of tests of the recent 6885 high, but mostly hovering around the 6850 area while we await news from the Fed later this week. There is a fairly small dividend today of 2.2 which is unlikely to get the divi hunters too excited. Though there hasn’t been as much divi chasing towards the close recently as there used to be.

US & Asia Overnight from Bloomberg

Asian stocks climbed, led by shares in Tokyo, on speculation the Federal Reserve won’t rush to raise interest rates amid mixed data in the world’s largest economy.

The MSCI Asia Pacific Index rose 0.1 percent to 139.34 as of 9:07 a.m. in Tokyo. Japan’s Topix index increased 0.7 percent as the yen traded at 100.34 against the U.S. dollar. The S&P 500 Index closed near a record high as reports showing a surge in American new home sales and a slowdown in manufacturing brought into question the hawkish tone of recent comments from Fed officials. There’s a 28 percent chance of a rate hike in September, according to data compiled by Bloomberg based on Fed fund futures.

“While recent U.S. data has been mixed, the base case for the Fed is probably to increase rates in the absence of any compelling reason not to,” Michael McCarthy, chief market strategist in Sydney at CMC Markets, said by phone. “The Fed is aware that there’s a substantial risk that if economic conditions deteriorate, they have very little room to move. Given this, the central bank wants to normalize rates as soon as they can.”Asian stocks have fluctuated this month as investors scrutinize economic data and comments from Fed officials to assess the prospects for higher U.S. rates. Investors are waiting for Federal Reserve Chair Janet Yellen’s speech later this week at Jackson Hole, Wyoming.

South Korea’s Kospi index added 0.1 percent. Australia’s S&P/ASX 200 Index increased 0.1 percent. New Zealand’s S&P/NZX 50 Index fell 0.1 percent. Markets in China and Hong Kong have yet to start trading.

Futures on the China A50 Index were little changed in most recent trading, while those on the Hang Seng Index added 0.2 percent. Chinese stocks declined in Hong Kong on Tuesday, with the Hang Seng China Enterprises Index sliding 0.2 percent, dragged down by energy producers after oil prices tumbled on global oversupply concerns. The Shanghai Composite Index added 0.2 percent.

Futures on the S&P 500 were little changed after the U.S. equity benchmark index rose 0.2 percent on Tuesday. American equities showed signs of breaking out of a torpor, with Monsanto Co. leading a rally in raw-material shares as it’s said to be closer to a merger with Bayer AG. Chipmakers boosted the technology group, and Best Buy Co. surged 20 percent after surprising earnings.

Oil fell as industry data showed U.S. crude stockpiles expanded, adding to a global glut of supply. West Texas Intermediate crude slipped as much as 1.3 percent in early Asian trading after climbing 1.5 percent on Tuesday. [Bloomberg]

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

We might well have another fairly lacklustre day today while we await Yellen’s speech following the Jackson Hole meeting tomorrow. Most traders are looking for clues from the Fed for interest rates and general feeling about the future, as US data recently have been fairly mixed. That said, we have the 2hour chart showing support at 6838 so might well see a bit of a bounce here if tested – its also the S1 level for today.

Resistance wise the 30min chart looks fairly bearish to start with, with resistance at the pivot at 6860, and the coral at 6863. So, we might fluctuate between those levels today, though slightly wider resistance is at 6899 for the 10 day Bianca and support at 6796.

40 Comments

  1. Morning Nick ! i had a short running from 75 yesterday , thought it would get to 6800 but it didnt but glad it got closed @ 6826… nothing too exciting today .. short from 58 … lets see if it repeats itself.. or break further down… good day everyone

  2. Morning all,I’ve finally stopped being annoyed by Central bank employee speak being all that really matters,it’s taken a few years,but woke up today not at all irritated 🙂 i think Jackson Hole having a silly name helped.Anyway just goes to show that eventually anything can be accepted by anyone as just how it is.
    Planning on scalping Wed/Thurs across Europe and U.S sessions fwiw.

    1. Morning WSF……..yeah our job is to take advantage of the price fluxuations ……The reasons behind the price action we need to acknowledge , understand , and take advantage of…..but not let it interfere with our goal of trading whatever is thrown at us…Have a great day mate and good luck everyone :0)

  5. Hello chaps, just thought I’d pop in and say Hi and good luck.
    Looks like the lunatic takeover of the asylum is progressing well.

    2. Oh my hero :0) ….hiya matey great to see you on here again …I thought you would be back around the highs ready to clean up again :0) YOGIS Back lol :0)…..have a great day mate and stay well :0)….

      1. Hey WSF……we are going to get some right b*llockings again…….don’t mention that closed Dow for Gods sake :0)….

    3. Hi guys, somethings never change lol.
      Been living the life, put about 6k miles on the bikes and found a nice little house in the Picos de Europa in Spain.
      I’ve hardly traded since Brexit and tbh, don’t miss it in the slightest and am successfully alcohol free, don’t miss that either..
      Managed to take a tidy profit on 60% of my Bitcoins around $700
      Gotta smell a few more roses before I turn my toes up 🙂

      1. Good on you tmfp…….I wish you the very best in whatever direction you take from here……..Stay Well buddy…….

      2. Nice,sounds really good,if you want to get some extra exercise there to add to the good food I’d recommend an E Bike,one that isnt allowed in the U.K with an engine that doesnt cut out at 15,easy enough to find and you could get some conditioning on the way up and a hell of a run heading down.

  6. Cant deny that somethings felt good inside after hearing from tmpf .. keep well!! its like family in here and we all are connected in some way … each one learning from other … wish everyone well

  7. Anyway guys, the bike and the sunshine beckon 🙂
    May your losses be cut quickly and your profits run and run…..

    Cheers.

  9. shame im stuck in work!

    signed up to Nick’s membership so been spending a lot of time in his chat room. very good i must say for the amateurs like me!

    1. I’m tempted but know I wouldn’t be able to stick to the plan each day! Someone would have to tie my hands together.

      1. im being really strict with it, only 50 quid a month and there are some other good traders in there also.

        you still sitting on that short?

  10. come on ! tempted to close with blue but think should let it run till <6800 … decisions ,, …lol

  11. dax has been a bit messy today – correlations with other markets not as clean cut as usual – hope that changes!
    Time for some sun for me (and lunch).
    GL all, see you tmrw

  12. Hi all, having a good day! Closed multiple FTSE shorts, and my SP punt. Watch it dive now I’m out!

    Long for a small one at 6831

  14. Long closed for 10pts

    Short at 6842 looking for 20pts. It will most likely go up but will add in if needed.

      1. I see a fat finger down to 450, I think if that’s surpassed tomorrow then a down trend could form. What are your thoughts ?

  16. short closed at 6813

    Long again at 6813

    ( still have shorts and longs at silly placed but fig their good goal post )

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