Good morning. Overnight we have had a little bit of a bounce with the moving averages on the 10 and 30min turning a bit bullish. Maybe I was a bit early with that long yesterday and worries over China and tech results int he US scared the bulls a bit more than was necessary. If the 6660 holds as the low we could resume the uptrend for the rest of this week, and 6671 is the bottom of the 10 day Raff now. Earnings season in the US is seeing a mixed back with some missing and some beating. Feels like a buy the dip day today so far.
Greece passed a second bundle of policy measures demanded by the country’s European creditors as Prime Minister Alexis Tsipras urged lawmakers to stop the country being forced out of the euro. Tsipras won the support of at least 151 lawmakers in a televised, public vote in the 300-seat parliament in Athens for a bill that will simplify court decisions and transpose European rules on failing banks.
US & Asia Overnight from Bloomberg
Asian stocks rose as a rally in Japanese equities countered a decline in mining shares amid a deepening commodities rout.
The MSCI Asia Pacific Index gained 0.1 percent to 143.76 as of 9:05 a.m. in Tokyo. A gauge of commodities returned to a 13-year low, with a rout that started in gold infecting other metals, oil and farm products. The Nasdaq Composite Index slumped on Wednesday by the most in two weeks as disappointing results from Apple Inc., Microsoft Corp. and Yahoo! Inc. rippled through technology stocks.
“There’s a fear the world economy is slowing and that’s why commodities from iron ore to oil, gold and silver are all going down,” Jim Bianco, Chicago-based president of Bianco Research LLC, told Bloomberg Television. “This has been a ho-hum earnings season.”
Japan’s Topix index gained 0.6 percent while Australia’s S&P/ASX 200 Index was little changed. Markets in China and Hong Kong have yet to open.
South Korea’s Kospi index slipped 0.1 percent. The country’s economic growth slowed in the second quarter as the outbreak of Middle East Respiratory Syndrome damped consumer spending in an economy that’s already struggling with weak sentiment and an export slump.
New Zealand’s NZX 50 Index slid 0.2 percent. The nation’s central bank cut interest rates for a second time in six weeks and said further easing will likely be needed to stoke inflation as growth slows.
The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong dropped 1.2 percent on Wednesday, bringing this month’s losses to 9.6 percent, the worst performer among 93 global benchmarks tracked by Bloomberg, as the bull market in mainland equities ended. The Hang Seng Index slid 1 percent, while the Shanghai Composite Index added 0.2 percent.
International investors have soured on Chinese stocks as the nation’s government took unprecedented steps to arrest a rout that erased almost $4 trillion of value. While the measures helped support share prices, critics say intervention undermines the country’s pledge to increase the role of markets in the world’s second-largest economy.
E-mini futures on the Standard & Poor’s 500 Index rose 0.2 percent. The U.S. equity benchmark index retreated 0.2 percent on Wednesday. [Ref]
Todays pivot is 6698 so we have a bit of resistance here, but I have a feeling we will break through this morning as there is a bit of bullish momentum building looking at the moving averages. The crossed to bull on the 30min chart in the early hours, so we could well get an initial run towards 6720, and ultimately a rise above the 200ema at 6740ish. We shall have to see if there bulls have any/enough power to break through that for a final push too the top of the 30min channel. Support wise, we have the 10 day Bianca at 6671 so a good place to buy into any dip at this level, with 6661, 6655 and 6627 as supports below this. Looking at the S&P the 10ema at 2110 held pretty well yesterday meaning it hasn’t dipped and tested the 25ema as yet. The 10 day Raff lines up with that level so any dip to 2103 is worth a long.