I am writing this on Sunday night so it will be a slightly abridged version as we are obviously still closed as I write. I am out all day on Monday.
As expected, Friday was slightly bearish as the fear over Iraq and Ukraine (once again) took hold, the US being more bearish though. That said, having seen a 6760 low, the FTSE did climb back, as did the S&P from 1927.
Iraq looks at risk of either going into all out carnage, or will be squashed, especially if Iran start to side against ISIS. Still, all a bit of a mess!
FTSE Outlook
Calling Mondays action is a little tricky till we see where we open on Sunday night, but based on the pivot being at 6793 we will have that as initial resistance. That tallies with the coral on the 30 minute chart as well, though above that 6810 will be the next area – the top of the 30 minute channel.
Support wise, Fridays low of 6756 should hold, and we have the bottom of that 30 minute channel just below that at 6753. Of hope for the bulls was the S&P Raff channels holding on Friday, and a fairly decent’ish bounce off them. The bottom of the 10 day Bianca channel for today is 6771 – a level that we closed at on Friday; we are below the 20 day Bianca (6790). I wouldn’t be surprised if Monday is bullish.
They might well open Sunday night around 6790 at the pivot, an initial dip to 6770 for the bottom of the 10 day Bianca then a rise for the rest of the day. We shall see, these are my initial thoughts looking at it currently, though if I have time I will have a quick look in the morning after the Asia session has run for a bit.