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Bulls defend 7570 but need to break 7640 still | 7670 7690 above | 7561 7523 support

#1 · 8th June 2022, 10:22 am

Quote from Nick on 8th June 2022, 10:22 am
FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE 100 dips 0.3% as growth worries return to deliver the bear Tuesday
Stocks rose in Asia on Wednesday, spurred by Chinese technology shares and a climb in Japan as yen weakness bolsters exporters.
Hong Kong’s Hang Seng Tech Index advanced after new video game approvals encouraged the view that China’s crackdown on internet firms is loosening. That helped an Asia-Pacific share gauge to add a little under 1%.
Still, the tech index and the broader Asian market came off session highs, suggesting some investors took the opportunity to bank profits. Equity futures were mixed, with those for the U.S. dipping and Europe’s pushing higher.
Treasury yields edged up, taking the benchmark 10-year rate back toward 3%. The yen slid to another two-decade low versus the dollar on the policy contrast between a super-dovish Bank of Japan and hawkish Federal Reserve.
Sentiment remains fragile on concerns that interest rates will need to go much higher to rein in inflation, stifling economic growth in the process. The Bloomberg Commodity Spot Index of raw materials is at a record peak, underlining global price pressures.
Stagflation Fears
The World Bank cut its forecast for global economic expansion in 2022 further, warning that several years of above-average inflation and below-average growth lie ahead, with the pain of stagflation potentially lasting for several years. The lender reduced its estimate for global growth this year to 2.9% from a January prediction of 4.1%, due to a surge in energy and food prices, supply disruptions triggered by Russia’s invasion of Ukraine and a drive by central banks globally to increase interest rates from rock-bottom levels. Bank President David Malpass said: “For many countries, recession will be hard to avoid.”
FTSE 100 live outlook prediction analysis for 8th June 2022
Bit of a bear Tuesday in the end yesterday but the bulls managed to defend the 7570 level once again. The key now will be if the bulls can break it higher to target the 7670 level, with 7690 above that. Both the Raff channels continue to head up, and it was a good sign for the bulls that the US S&P defended the 4085 level. The expected support overshoot (stop hunt!) didn't get down to 4073 unfortunately but did bounce at 4076 instead. The bulls then drove it up well to 4150, and it looks like that may well continue today with a rise towards 4185. That should pull the FTSE100 up with it.
Initially we have support at the daily pivot and 30m coral line at 7608, and the bulls will be keen to defend the round number of 7600. We also have the 200ema on the 30m at 7596 to start with today. However, a break of this and the bears will be looking to drive it down to yesterdays low, and break below that as we would then be on for the slide down to the 7526 level where we have the daily ema support. That said, 7602 is also the 2h support now, as that timeframe has gone bullish again, after the rise from 7570. As such, I would like to see the 7600 area hold today.
If the bulls were to break above the 7690 then we have R3 just above at 7709, and psychologically seeing 7700 will give things a boost. Not that long ago we were at 7150 (12 May)!
S&P500
The 2h chart has gone bullish with the climb from 4076 and has 4128 for support to start with today., That also aligns with the daily pivot, and the 30m 200ema, while below that we have the daily ema at 4112. As such, I would like to see that higher support hold any early test this morning, and kick start another leg higher to the 4186 level. A break of that will be key for the bulls as we can get back into the 4200+ area.
A break of 4112 then we have 4098 S1 and the key fib 4103 and the bulls will be keen to defend this round number. We have some news coming on Friday with CPI and then the FOMC next Wednesday.
Good luck today.
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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 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE 100 dips 0.3% as growth worries return to deliver the bear Tuesday

Stocks rose in Asia on Wednesday, spurred by Chinese technology shares and a climb in Japan as yen weakness bolsters exporters.

Hong Kong’s Hang Seng Tech Index advanced after new video game approvals encouraged the view that China’s crackdown on internet firms is loosening. That helped an Asia-Pacific share gauge to add a little under 1%.

Still, the tech index and the broader Asian market came off session highs, suggesting some investors took the opportunity to bank profits. Equity futures were mixed, with those for the U.S. dipping and Europe’s pushing higher.

Treasury yields edged up, taking the benchmark 10-year rate back toward 3%. The yen slid to another two-decade low versus the dollar on the policy contrast between a super-dovish Bank of Japan and hawkish Federal Reserve.

Sentiment remains fragile on concerns that interest rates will need to go much higher to rein in inflation, stifling economic growth in the process. The Bloomberg Commodity Spot Index of raw materials is at a record peak, underlining global price pressures.

Stagflation Fears
The World Bank cut its forecast for global economic expansion in 2022 further, warning that several years of above-average inflation and below-average growth lie ahead, with the pain of stagflation potentially lasting for several years. The lender reduced its estimate for global growth this year to 2.9% from a January prediction of 4.1%, due to a surge in energy and food prices, supply disruptions triggered by Russia’s invasion of Ukraine and a drive by central banks globally to increase interest rates from rock-bottom levels. Bank President David Malpass said: “For many countries, recession will be hard to avoid.”

FTSE 100 live outlook prediction analysis for 8th June 2022

Bit of a bear Tuesday in the end yesterday but the bulls managed to defend the 7570 level once again. The key now will be if the bulls can break it higher to target the 7670 level, with 7690 above that. Both the Raff channels continue to head up, and it was a good sign for the bulls that the US S&P defended the 4085 level. The expected support overshoot (stop hunt!) didn't get down to 4073 unfortunately but did bounce at 4076 instead. The bulls then drove it up well to 4150, and it looks like that may well continue today with a rise towards 4185. That should pull the FTSE100 up with it.

Initially we have support at the daily pivot and 30m coral line at 7608, and the bulls will be keen to defend the round number of 7600. We also have the 200ema on the 30m at 7596 to start with today. However, a break of this and the bears will be looking to drive it down to yesterdays low, and break below that as we would then be on for the slide down to the 7526 level where we have the daily ema support. That said, 7602 is also the 2h support now, as that timeframe has gone bullish again, after the rise from 7570. As such, I would like to see the 7600 area hold today.

If the bulls were to break above the 7690 then we have R3 just above at 7709, and psychologically seeing 7700 will give things a boost. Not that long ago we were at 7150 (12 May)!

S&P500
The 2h chart has gone bullish with the climb from 4076 and has 4128 for support to start with today., That also aligns with the daily pivot, and the 30m 200ema, while below that we have the daily ema at 4112. As such, I would like to see that higher support hold any early test this morning, and kick start another leg higher to the 4186 level. A break of that will be key for the bulls as we can get back into the 4200+ area.

A break of 4112 then we have 4098 S1 and the key fib 4103 and the bulls will be keen to defend this round number. We have some news coming on Friday with CPI and then the FOMC next Wednesday.

Good luck today.

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