Bear Tuesday looms as S&P500 tests 4425 | 6989 6950 6933 support | 7023 7050 resistance

Bear Tuesday looms as S&P500 tests 4425 | 6989 6950 6933 support | 7023 7050 resistance

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

FTSE 100 live outlook prediction analysis for 27th July 2021

Was a good rise on the S&P500 yesterday from the 4283 support level and the bulls really pushed on. That didn’t follow through on the FTSE100 though which continues to lag and just teases that 7043 daily resistance level. Looks like we may well get a bit of bearishness to start the day though and the bears will be keen to pop below the 7000 level but we may well see the dip defended again, as we have support from S1 at 6992 and also the first test of the green coral on the 2h at this level.

If the bears were to break below 6990 though then we will slide down to 6972 for a key fib test but also probably the S2 level at 6956. We do have some daily support here though so could see this hold, otherwise the worm is likely to turn and we may well start to slide towards the next key level at 6890. Both the Raff channels are heading down now and looking at the daily chart its got a lot more bearish – all ready for the summer lull.

However, if the bulls do defend the 6990 level again and we get a push up then we should finally see a test of the 7045 level. A break of that and things start to look a bit more optimistic but I am thinking that its a bit early for that just yet as I expect the bears top appear here. If not then a further rise towards the 7075 R2 level and ultimately a test of the daily coral at 7137 currently may well play out.

We bounced off the 30m 200ema yesterday (well just below was the low) and it looks like we are going to get a further test first thing today. The S&P has held up pretty well overnight but good move banking that long at 4420 as that has marked the high so far. The bulls will be looking to take that higher today though and possibly as high as R1 at 4436.

So looking at a dip and rise today, remember its earnings season so can be a bit more volatile. Good luck today.

Asian Session

Stocks and U.S. equity futures were broadly steady Tuesday as traders awaited earnings from major technology companies. Hong Kong shares extended a retreat sparked by Beijing’s sweeping regulatory overhaul.

MSCI Inc.’s Asia-Pacific equity gauge fluctuated as shares rose in Japan and wavered in China. U.S stock futures fell after the S&P 500 hit a new peak, with Tesla Inc. the latest firm to post better-than-expected results. The Nasdaq 100 and Dow Jones Industrial Average also ended at all-time highs overnight. European contracts were little changed.

The Nasdaq Golden Dragon China Index — which tracks 98 of China’s biggest firms listed in the U.S. — suffered its largest two-day drop since 2008, hurt by China’s clampdown on sectors ranging from technology to education and real estate as Xi Jinping’s Communist Party tightens its grip on the economy.

Treasuries climbed and the dollar was steady ahead of this week’s Federal Reserve policy meeting, where officials are expected to discuss an eventual tapering of stimulus. The real yield on U.S. 10-year debt touched a record low, which for some reflects economic concerns from the spread of the delta coronavirus variant. The yen outperformed among Group-of-10 peers.

Beijing’s crackdown has left investors wondering which sectors might be targeted next and whether the selloff in Chinese equities increases the odds of wider risk aversion. At the same time, robust corporate profits and the ongoing rebound from the health crisis in the most-vaccinated nations are bulwarks for sentiment. Traders are also awaiting the Fed meeting for a steer on how inflationary pressures are shaping the monetary policy outlook. [Bloomberg]

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