6683, 6664, 6852, 6843 Support, 6697, 6710, 6722, 6746 Resistance

Good morning, Hope you had a good weekend. So Germany won the World Cup…. The S&P will be worried now if that statistic holds true and the S&P will be 9% lower in 3 months time again! At the moment it actually looks like the bounce from 6645 is gaining some strength and there is the chance that we will see 6750 this week (today?) and possibly back to 6800 before too long. A bold statement! A drop below Fridays low of 6664 would invalidate that though and the bottom of the Raffs and Bianca around 6620 and 6597 would be the levels to watch. Can the bulls break 6700 today?

Asia Overnight from Bloomberg
Asian stocks rose, with the regional benchmark gauge on course for its first gain in five days, as telecommunications firms and health-care shares advanced.

The MSCI Asia Pacific Index added 0.4 percent to 146.50 as of 11:52 a.m. in Hong Kong. Two shares rose for each two that fell. The gauge lost 1.1 percent last week, its first retreat in nine weeks, after equity valuations touched the highest level this year and the yen strengthened against the dollar. More than 150 U.S. companies are scheduled to report quarterly results in the next two weeks, including Citigroup Inc., JPMorgan Chase, Goldman Sachs Group Inc. and Johnson & Johnson.

“It’s a very quiet day for macro data that will influence the region, so it’s likely that most indexes on this side of the world will tread water,” said Evan Lucas, a Melbourne-based market strategist at IG Ltd. “The second-quarter earnings season in the U.S. is likely to be the next major driver of global markets. With all the major U.S. banks reporting this week, the market will get the best view of the self-sustaining U.S. economy that the Federal Reserve now sees.”

Regional Gauges
Japan’s Topix index rose 0.4 percent. SoftBank, Japan’s largest carrier by market capitalization, gained 1.3 percent to 7,580 yen. Sumitomo Dainippon added 5 percent to 1,203 yen. Australia’s S&P/ASX 200 Index advanced 0.5 percent, with trading volume 30 percent below its 30-day average for the time of day.

New Zealand’s NZX 50 Index climbed 0.4 percent. Hong Kong’s Hang Seng Index (HSI) rose 0.4 percent and the Hang Seng China Enterprises Index of mainland equities listed in the city gained 0.5 percent. The Shanghai Composite Index increased 0.4 percent.

Singapore’s Straits Times Index slid 0.1 percent as a report showed the economy unexpectedly contracted in the second quarter after manufacturing slumped, hurt by a tighter labor supply. Taiwan’s Taiex index and South Korea’s Kospi index both advanced 0.4 percent.

Profit at Standard & Poor’s 500 Index companies probably rose 4.5 percent in the three months through June, while sales gained 3.1 percent, estimates compiled by Bloomberg show. Forecasts have been cut since the start of April, when analysts predicted a 7.3 percent jump in earnings and 3.7 percent gain in sales.

Global Rout
More than $1 trillion has been wiped from the value of global stocks since a peak reached July 3, as analysts brought forward estimates for Fed rate increases and a parent of Portugal’s Banco Espirito Santo SA missed a bond payment, reigniting concerns over Europe’s financial stability as it emerges from its sovereign-debt crisis.

The MSCI Asia Pacific Index (MXAP) traded at 13.3 times estimated earnings at the last close compared with 16.6 for the S&P 500, according to data compiled by Bloomberg. Futures on the U.S. equity gauge rose 0.1 percent today after the underlying index added 0.2 percent July 11.

FTSE Outlook

Todays pivot is 6683 so I expect that to be initial support on any dip as the shorter time frame charts are looking a little bit more optimistic now. Worst case for a low today would be 6664, being Fridays low, and if broken then 6643 – the most recent low. Don’t think it will get that low barring some unexpected upset. Friday wasn’t quite as bearish as I thought it might be, which is a good sign for some rises this week. If the bulls can break this early 6697 resistance then 6710 and 6722 are the next resistance levels to watch. I think 6722 will see some bearish action, but if (when?) it gets broken 6746 and 6806 are possible. 6746 is the 10 EMA on the daily chart, and also the top of the 10 day Raff.