Technical analysis for 8th September 2026
The key theme this morning is inflation risk returning through oil. Brent is back above $97, US-Iran tensions remain elevated, and bond yields are edging higher. At the same time, the dollar is relatively soft ahead of Friday's crucial US CPI report. Markets currently put the probability of a September Fed hike at around 60% following Friday's strong jobs report.
That leaves equities caught between resilient economic growth and the increasingly uncomfortable combination of $97 oil + higher yields.
With the US returning today and the stage set for a bear Tuesday we may well see a decline to the 10750 area this morning. Initially the bears are trying to break 10800 and with the 2h chart now bearish I am looking at the 10750 initially, with the daily support level at 10689 below that. That might be a bit too pessimistic though, and will be watching 10750 closely instead as we have S2 and the key fib here. The 10d Raff channel has also turned down again, and the bulls failure to hold above the 10825 level gives the bears more momentum.
One bright spot for the bulls is that the US won't like opening with a gap down so may well see an initial rise early later as they attempt to close the gap and aim for 7727 R1. This level could be a decent short though! The 7705 trade yielded a few points overnight but with the bears now probing below the 7700 level we may well see further downside as today goes on.
Back to the FTSE100 and if the bulls were able to break above the 10825 level then the 10867 daily resistance level (and the one we dropped off yesterday) is the next line in the sand. Above that then 10922 is also still in play but might be a big ask today.
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