Support 6023 6003 5996 5990 5914 5876
Resistance 6095 6124 6142 6156 6213 6214 6336

Good morning. Ended up with a fairly decent drop off the back test of the 6125 10 day Bianca channel back test yesterday back to sub 6000. However, overnight we have seen a bit of a rally on renewed hopes of further stimulus measures. Certainly the volatility is going to continue for a while yet. England’s football team seemed to be a in a rush to also leave their European counterparts as well – must be a record for the country to leave the EU and the team to leave the Euros all in one week!

US & Asia Overnight from Bloomberg

Asian stocks pared declines and Tokyo shares reversed a steep loss amid speculation policy makers will move to shore up financial markets after Britain’s vote to exit from the European Union.

The MSCI Asia Pacific Index was down 0.1 percent as of 12:35 p.m. in Tokyo, after dropping 1.2 percent earlier. Tokyo shares climbed after the Nikkei 225 Stock Average’s drop below 15,000 spurred buying. South Korea’s Kospi index rose 0.5 percent, reversing a loss of 1 percent.

Investors are watching closely for signs that central banks will help to ease the market turmoil. Speaking to reporters in Tokyo, central bank Governor Haruhiko Kuroda declined to comment on any emergency BOJ meeting, while Prime Minister Shinzo Abe said Japan would continue to monitor markets carefully.

“We are probably going to have looser policy settings than before the vote,” Tim Schroeders, a Melbourne-based portfolio manager at Pengana Capital Ltd., who helps oversee about $1.2 billion in assets, said by phone. “You’d have to suspect that the bias is to the downside for global growth and as a result that stimulus remains in light of increased uncertainty.”

Asian stocks rebounded Monday from the steepest slump since August as Abe issued instructions to calm markets. Traders are looking for signs of relief as they grapple with the potential of slower global growth after Britain’s decision to exit the EU without a clearly defined path and timeline. Almost $4 trillion has been wiped from the value of global shares since the day of the vote last Thursday.

Japan’s Topix rose 0.2 percent after surging 1.8 percent Monday. Still, the index is heading for its worst monthly loss since October 2008, and its first back-to-back quarterly decline since 2012. The U.K.’s vote to leave the EU has boosted an already strengthening yen, dealing a blow to the Bank of Japan’s reflation strategy. The odds of further easing at the BOJ’s July meeting have risen.

Australia’s S&P/ASX 200 Index slipped 0.6 percent and New Zealand’s S&P/NZX 50 Index was little changed. Singapore’s Straits Times Index added 0.6 percent.

Futures on the S&P 500 Index climbed 1 percent, following a 1.8 percent slide in the underlying gauge on Monday. [Bloomberg]

FTSE 100 Outlook and Prediction

I have some fairly decent support at around the 6000 level today – we have the daily pivot at 6003 and a green coral on the 30min at 5990. Just above this we also have 6024 as support from the 25ema on the 30min and the coral on the 10 min. So, its possible that we may well see a bit of a rise today, if the 6000 area holds as support. The markets have held up pretty well (admittedly they were pumped up higher prior to the vote to 6450 so if they fell then the lows wouldn’t be as low as if it was falling from say 6000) since the vote result, though sterling is still taking a battering, seeing the lowest level since 1985 yesterday. On the 2 hour chart we have resistance at 6155 from the coral, and this could be a good area to short from. To start the day off though it all looks quite positive on the charts with some potential upside. The key will be the bulls holding 5990 support. We also have the bottom of the 10 day Bianca at 5996 so are back within the channel now.