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Bull Monday on the cards if SP defends 4200 | 7085 7120 7141 resistance | 7046 7026 6998 support

#1 · 7th June 2021, 10:30 am

Quote from Nick on 7th June 2021, 10:30 am
FTSE 100 live outlook prediction analysis for 7th June 2021
The US again added fewer jobs than expected last month as post-Covid worker shortages held back the employment recovery. About 559,000 jobs were created in the world's largest economy in a second underwhelming month - almost 100,000 fewer than economists had predicted - with companies struggling to fill record vacancies. It marked an improvement from April’s shock deceleration when just 278,000 jobs were generated, but economists warned shortages are still holding back the labour market.
Forecasters predicted rising pay packets will climb even further in the coming months as firms fight to hire more staff.
Generous unemployment benefits, early retirement schemes and fears about catching the virus have persuaded workers to remain on the sidelines of the labour market as the recovery gathers pace.
The US Labor Department revealed a fall in unemployment from 6.1pc to 5.8pc in May, but the labour force is still more than 5m smaller than pre-Covid trends would suggest as demand outstrips supply.
Wall Street traded higher and US Treasury yields fell after the jobs numbers eased worries of an overheating economy. Some investors fear that a rapidly recovery could combine with huge stimulus efforts to spark rising inflation, forcing the Federal Reserve to intervene by raising rates.
The FTSE 100 finished about 5 points higher at 7,069 with Ocado leading the risers, up 3pc. Rolls-Royce, meanwhile, led the fallers with a 2.2pc decline. After breaking above the 7,000 mark in mid-April, the FTSE 100 has been stuck a narrow range on fears that rapid economic growth could lead to higher inflation and faster tightening of monetary policy by central banks.
Higher U.S. Rates
Treasury Secretary Janet Yellen said President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates. “If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen said Sunday in an interview with Bloomberg News during her return from the Group of Seven finance ministers’ meeting in London. Biden’s packages would add up to roughly $400 billion in spending per year, Yellen said, contending that’s not enough to cause an inflation over-run.
Bitcoin
Bitcoin and most other top cryptocurrencies fell on concerns that there may be a further crackdown on the industry in China and as a report from Goldman Sachs Group Inc. served as a reminder that institutional adoption may be a long process. Chinese social-media service Weibo suspended some crypto-related accounts.
Asian Session
Asian stocks were steady and U.S. equity futures edged lower Monday as traders weighed Janet Yellen’s comments on higher interest rates and awaited this week’s U.S. inflation report.
Shares fluctuated in Japan and dipped in Hong Kong, while S&P 500 and European contracts were in the red. Treasury Secretary Yellen said President Joe Biden should push forward with his spending plans even if they spark inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”
Benchmark 10-year U.S. Treasury yields and the dollar ticked up. Investors continue to assess whether price pressures will lead central banks to pare stimulus earlier than expected. The S&P 500 rose toward a record Friday on a jobs report that showed a pickup in hiring but fell short of estimates, suggesting scope for ongoing policy support.[Bloomberg]
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FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The FTSE has been coiling in a pretty tight range recently and even more so today as we have initial resistance on the 2 hour chart at the 7085 level, and support on the 30min chart at 7070! As such I am thinking that we will get an initial kick up (as we are on this support as I write this) towards that 7085 area, and also coinciding with the high late on Friday. If the bears appear there for a dip and rise sort of day, we may well get as low as the key fib at 7026, and the daily support (recent low as well) at 7014.
We do have S1 in the way first though for any drops to be defended at 7046. Cross matching this with the S&P chart - the 2 hour is now bullish after the rise on Friday and has decent looking support at the 4203 level for today. The 4230 resistance level has remained intact for the moment, and this is the level that the bulls need to break above. If they manage that it should help the bulls break above the 7100 level on the FTSE100.
Above the 7087 level then we have R1 at 7094, though a stronger resistance level at the recent high around the 7120 level. If we get a decent bull Monday, especially with a dip and rise playing out, then we may well see a rise to this level today. The ball is firmly in the bulls court today! Above 7120 then 7140-7150 is the R3 level and also the top of the 10 day Raff channel. I am not convinced it will get that high today though but do keep an eye on it - the 10d Raff channel is usually pretty reliable.
Talking of which, the bottom of the 10 day Raff is at 7009, so the bulls have a case to hold above the key 7000 level for the moment. It would be good to see the S&P rise towards the 4300 level as well before any seasonal drop later this month.
Good luck today, FTSE is certainly coiling for a break one way or the other having been in such a small range!
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If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
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FTSE 100 live outlook prediction analysis for 7th June 2021

The US again added fewer jobs than expected last month as post-Covid worker shortages held back the employment recovery. About 559,000 jobs were created in the world's largest economy in a second underwhelming month - almost 100,000 fewer than economists had predicted - with companies struggling to fill record vacancies. It marked an improvement from April’s shock deceleration when just 278,000 jobs were generated, but economists warned shortages are still holding back the labour market.

Forecasters predicted rising pay packets will climb even further in the coming months as firms fight to hire more staff.

Generous unemployment benefits, early retirement schemes and fears about catching the virus have persuaded workers to remain on the sidelines of the labour market as the recovery gathers pace.

The US Labor Department revealed a fall in unemployment from 6.1pc to 5.8pc in May, but the labour force is still more than 5m smaller than pre-Covid trends would suggest as demand outstrips supply.

Wall Street traded higher and US Treasury yields fell after the jobs numbers eased worries of an overheating economy. Some investors fear that a rapidly recovery could combine with huge stimulus efforts to spark rising inflation, forcing the Federal Reserve to intervene by raising rates.

The FTSE 100 finished about 5 points higher at 7,069 with Ocado leading the risers, up 3pc. Rolls-Royce, meanwhile, led the fallers with a 2.2pc decline. After breaking above the 7,000 mark in mid-April, the FTSE 100 has been stuck a narrow range on fears that rapid economic growth could lead to higher inflation and faster tightening of monetary policy by central banks.

Higher U.S. Rates

Treasury Secretary Janet Yellen said President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates. “If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen said Sunday in an interview with Bloomberg News during her return from the Group of Seven finance ministers’ meeting in London. Biden’s packages would add up to roughly $400 billion in spending per year, Yellen said, contending that’s not enough to cause an inflation over-run.

Bitcoin

Bitcoin and most other top cryptocurrencies fell on concerns that there may be a further crackdown on the industry in China and as a report from Goldman Sachs Group Inc. served as a reminder that institutional adoption may be a long process. Chinese social-media service Weibo suspended some crypto-related accounts.

Asian Session

Asian stocks were steady and U.S. equity futures edged lower Monday as traders weighed Janet Yellen’s comments on higher interest rates and awaited this week’s U.S. inflation report.

Shares fluctuated in Japan and dipped in Hong Kong, while S&P 500 and European contracts were in the red. Treasury Secretary Yellen said President Joe Biden should push forward with his spending plans even if they spark inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”

Benchmark 10-year U.S. Treasury yields and the dollar ticked up. Investors continue to assess whether price pressures will lead central banks to pare stimulus earlier than expected. The S&P 500 rose toward a record Friday on a jobs report that showed a pickup in hiring but fell short of estimates, suggesting scope for ongoing policy support.[Bloomberg]

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

The FTSE has been coiling in a pretty tight range recently and even more so today as we have initial resistance on the 2 hour chart at the 7085 level, and support on the 30min chart at 7070! As such I am thinking that we will get an initial kick up (as we are on this support as I write this) towards that 7085 area, and also coinciding with the high late on Friday. If the bears appear there for a dip and rise sort of day, we may well get as low as the key fib at 7026, and the daily support (recent low as well) at 7014.

We do have S1 in the way first though for any drops to be defended at 7046. Cross matching this with the S&P chart - the 2 hour is now bullish after the rise on Friday and has decent looking support at the 4203 level for today. The 4230 resistance level has remained intact for the moment, and this is the level that the bulls need to break above. If they manage that it should help the bulls break above the 7100 level on the FTSE100.

Above the 7087 level then we have R1 at 7094, though a stronger resistance level at the recent high around the 7120 level. If we get a decent bull Monday, especially with a dip and rise playing out, then we may well see a rise to this level today. The ball is firmly in the bulls court today! Above 7120 then 7140-7150 is the R3 level and also the top of the 10 day Raff channel. I am not convinced it will get that high today though but do keep an eye on it - the 10d Raff channel is usually pretty reliable.

Talking of which, the bottom of the 10 day Raff is at 7009, so the bulls have a case to hold above the key 7000 level for the moment. It would be good to see the S&P rise towards the 4300 level as well before any seasonal drop later this month.

Good luck today, FTSE is certainly coiling for a break one way or the other having been in such a small range!

Recommended Broker

IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!

Membership and Live Trading

If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

What you get

Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
Telegram live trading room and webinar group membership for discussion and realtime trade updates

Keep up to date with new content, free sign up below

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