Good morning. We did in fact get the dip and rise yesterday, though it dipped a bit lower than the pivot in the end. Problem with low volume days is that they are a lot harder to call. We have the US consumer confidence figure out at 3pm today which is probably going to be fairly upbeat and that expectation was what saw the jump in the FTSE at the end of the day. So, this is the last day of trading in 2013, will we see 6800?
Asia Overnight from Bloomberg
Asian stocks outside Japan rose, with a regional gauge extending gains into a third day as consumer and utilities companies advanced.
The MSCI Asia Pacific excluding Japan Index climbed 0.2 percent to 467.83 as of 1:01 p.m. in Hong Kong. Global equities soared by more than $9 trillion in 2013 as central bank stimulus helped the U.S. economy gain momentum and Europe recover from its longest-ever recession.
“Investors are finishing the year a lot more confident than they were at the start of it,” Ric Spooner, chief market analyst at CMC Markets Plc in Sydney, said by phone today. “ Given market moves this year we are now vulnerable to deeper corrections.”
China is scheduled to post its manufacturing purchasing managers’ index for December tomorrow, with economists projecting a drop to 51.2 from 51.4 in November. Readings above 50 signal expansion. South Korea reports trade data tomorrow.
Futures on the Standard & Poor’s 500 Index were little changed today after the index closed near an all-time high in New York yesterday, set for the biggest annual gain since 1997. The Dow Jones Industrial Average added 0.2 percent to a record. Trading volumes on both gauges were more than 35 percent below the 30-day average, data compiled by Bloomberg showed.
FTSE Outlook
We got a nice bounce from the lows yesterday so still bull pressure around which is good and should mean we have a fairly decent up day today. As mentioned above its US consumer confidence out later today at 3pm which should be good and push prices higher. S&P looks good for 1844 today. The FTSE needs to get above yesterday’s high at 6767 which would open up 6800 and 6833 (the top of the 2 Bianca channels).
Zooming out on the 30 minute chart shows a fairly decent channel, the bottom of which we are currently sat on at 6740 so if that holds then all being well we should be on for fairly optimistic day as per the arrow. Once again its going to be low volume though so we will probably see overreaction moves.
On that note, I wish you all a happy and prosperous New Year and here’s to a great 2014 trading together!