6744, 6730, 6715 Support, 6770, 6801, 6815 Resistance

Good morning, hope you had a good weekend. Friday followed the arrows with the dip and rise, but rather frustratingly not quite dipping to the ideal entry point and taking the order. Argghhh! Anyway, it certainly recovered during the day, to the point that now 6770 is resistance for today. Shrugged off (“climbed a wall of worry”) the fears over Russia, Israel, Gaza etc…. The rhetoric continues with Putin over the shooting down of MH17 so markets will be watching to see how that pans out in time. More sanctions maybe? Since hitting 6650 the other day, the FTSE has certainly turned up and the 10 day Raffs are once again pointing up, and we have further US company results out this week.

Asia Overnight from Bloomberg
Asian stocks rose, joining a global rebound as better U.S. earnings offset the downing of a passenger jet in Ukraine and Israel’s invasion of Gaza. Emerging-market currencies climbed while corn fell to the lowest since 2010.

The MSCI Asia Pacific excluding Japan Index advanced 0.3 percent as of 11:44 a.m. in Hong Kong, with three stocks rising for every two that fell. Futures on the Standard & Poor’s 500 Index (SPX) were little changed after the U.S. gauge climbed from its biggest loss in three months. Indonesia’s currency added 0.4 percent versus the dollar before the result of presidential elections is announced. Corn slumped 1.3 percent on U.S. production. Natural gas slid 1.9 percent.

Asian equities are following a July 18 jump in the U.S., where better earnings from Google Inc., the world’s third-largest company, refocused investors on economic growth amid crises in the Middle East and Ukraine. Halliburton Co. is among companies reporting today, while Internet bellwethers Facebook Inc. and Netflix Inc. release earnings later in the week. European Union foreign ministers meeting in Brussels tomorrow will consider tougher sanctions on Russian individuals and companies.

“Datawise it’s a very, very quiet week, so all leads will probably come from the U.S.,” said Evan Lucas, markets strategist at IG Ltd. in Melbourne. “More and more pressure on Russia is likely to see higher volatility in European trading. Earnings from Facebook and Netflix, while not huge movers in terms of the overall market, will be a good way of seeing how investors still view risk.”

U.S. Earnings
The S&P 500 rose 1 percent on July 18 in New York, the most since April 16. Google jumped 3.7 percent to lead technology shares higher after selling more advertising alongside Web-search results. Euro Stoxx 50 futures contracts added 0.6 percent, advancing after the Stoxx Europe 600 Index nearly erased a drop of 0.8 percent to close little changed.

About 77 percent of the 82 companies in the S&P 500 that have posted results this earnings season beat analysts’ profit projections, and 70 percent exceeded sales estimates, data compiled by Bloomberg show. Some 140 companies in the S&P 500 are scheduled to report earnings this week, including, McDonald’s Corp., Boeing Co., Apple Inc. and Microsoft Corp.

FTSE Outlook

Fridays high of 6770 will be resistance today, with 6801 above that. Should the bulls break that, then the top of the 10 day Bianca channel is at 6815. With the military and political turmoil, the bulls will certainly have a fight on their hands to reach the upper targets; however, looking at the daily chart there is a cluster of resistance around the 6815/6820 area – should that break 6850 is the next likely resistance, I think if it got above that during all this carry on then its a likely the FTSE will go for that all time high, though its been trying hard to avoid doing that this year while the US and DAX were charging ahead. Todays pivot is 6730 so we may well get support there if 6744 breaks. Lower support is 6714 were we have some minor PRT lines. Should it reach that low (and/or go lower) then the bears are back in contention for summer declines, as the daily EMAs are still in a bearish mode.

I have circled the main resistance area for me today, which is that 6770/6788 area – I think the bulls will struggle at this area.