FTSE 100 Support 6740 6724 6705 6661 6615 6612
FTSE 100 Resistance 6776 6782 6786 6833 6863 6897 6995

Good morning. The chart issue is finally resolved so am able to open them now. Gold has started rising but the usual afternoon indices recovery pattern yesterday didn’t really add that many points so the bulls may well be weakening again. We have held the 6700 fib support area for the moment, though we still have the 2 hour coral as resistance at 6782 for today. Gold has started to rise again so we may well be seeing the start of some further declines. If 6700 is broken then we are likely looking at 6500 or below.

US & Asia Overnight from Bloomberg

Asian stocks rose with U.K. equity index futures, and Treasuries edged higher ahead of American inflation data and testimony from Federal Reserve Chair Janet Yellen that will help shape U.S. interest-rate expectations.

Futures on the U.K.’s FTSE 100 rose for the third time this week as European equity index futures were little changed, while Japan’s Topix index closed at the brink of a bull market. Australian and New Zealand government bonds extended the last session’s recovery from a post-U.S. election debt rout as benchmark Treasuries advanced. The euro strengthened for the first time in nine days as Bloomberg’s dollar index was unchanged near a nine-month high. Crude fell following an increase in American stockpiles and as OPEC talks to agree on output cuts showed signs of strain.Yellen will be addressing Congress for the first time since Donald Trump’s victory in the Nov. 8 presidential election, an unexpected win that spurred speculation his plans for fiscal stimulus will quicken the pace of Fed interest-rate hikes. A December rate increase has become a foregone conclusion in the futures market, while prospects for further tightening triggered a global bonds rout and boosted the dollar since the start of last week.

“We are seeing the usual cautiousness appear as many investors awaited Fed Chair Janet Yellen’s Congressional testimony,” said Tony Farnham, a Sydney-based strategist at Patersons Securities Ltd. “The economic data released on the day were, as a group, on the soft side” in the U.S.

Stocks

Futures on the FTSE 100 index rose 0.2 percent by 7:17 a.m. in London. Euro Stoxx 50 contracts were little changed. The MSCI Asia Pacific Index was up 0.1 percent, extending Wednesday’s 0.4 percent gain. Japan’s Topix index rose 0.1 percent to close at a nine-month high, and the Shanghai Composite Index was little changed.

Futures on the S&P 500 Index rose 0.1 percent after the underlying gauge fell 0.2 percent in the last session and the Dow Jones Industrial Average retreated from a record high. Wal-Mart Stores Inc. is among companies reporting earnings on Thursday.

Currencies

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, was little changed after rising 0.2 percent in the previous session. The yen weakened 0.3 percent to 109.39 per dollar, and is still down about 4 percent since Trump’s victory. The euro edged up against the dollar, snapping an eight-day losing streak.
Malaysia’s ringgit fell for a seventh day, its longest stretch of losses in more than a year. Bank Negara Malaysia said Wednesday it will continue to restrict speculative activity in the currency market.

“I’m just seeing this as overall dollar strength,” said Wu Mingze, a foreign-exchange trader in Singapore at INTL FCStone Inc., a Nasdaq-listed global payments-service provider. “Unfortunately speculators will treat Bank Negara’s statements as a sign of weakness if they do not actually do something.”

Bonds

The yield on U.S. Treasuries due in a decade fell two basis points to 2.20 percent, having surged as much as 45 basis points in the wake of Trump’s election win to reach this year’s high of 2.30 percent on Monday. Traders assign about a 94 percent probability, the highest level of 2016, to the Fed boosting rates at its final meeting for the year on Dec. 13-14, futures contracts indicate.

“The market is firming in its expectations that the Fed is going to go,” said Aaron Kohli, a fixed-income strategist in New York at BMO Capital Markets Corp., one of 23 primary dealers that trade with the central bank. “We sold off very sharply in the last week and a half, and there’s some money that’s being put to work.”

The government will sell Treasury Inflation Protected Securities on Thursday and demand may be robust with BlackRock Inc., Fidelity Investments and Pacific Investment Management Co. — which oversee almost $9 trillion combined — all having recommended the securities since the U.S. election amid concern that consumer-price gains will accelerate.

New Zealand’s 10-year bonds rose for a third day, pushing their yield down by nine basis points to 3.01 percent. Similar-maturity notes in Australia gained for a second day.

Japan’s 10-year yield held steady at 0.015 percent. The Bank of Japan announced its first operations to purchase bonds at a fixed rate, a tool it introduced when deciding in September it would seek to control the yield curve. The purchases are targeting notes with maturities of up to five years.

Commodities

Crude fell 0.4 percent to $45.36 a barrel in New York after U.S. inventories rose for a third week. Prices were also depressed as oil ministers from Iran and Iraq, the two producers that pose the biggest obstacle to a proposed output cut by the Organization of Petroleum Exporting Countries, were set to skip talks this week in Qatar.

Saudi Arabia, Iraq and Iran remain at odds over how to share production curbs, said an OPEC delegate, who asked not to be identified because the information isn’t public. Brent crude in London slipped 0.5 percent to $46.40 a barrel.

Copper declined from a two-year high in Shanghai and volumes shrank as Chinese investor interest in the metal cooled. Futures in China have fallen 6.5 percent this week, and were trading at 43,670 yuan a metric ton. London Metal Exchange prices were down 0.4 percent Thursday and have slid 2.5 percent this week.

Gold has stabilized after its U.S. election thrashing and is on course to end the week little changed, even as investors bail from bullion-backed exchange-traded funds. Bullion for immediate delivery climbed as much as 0.3 percent to $1,228.35 an ounce before trading at $1,225.87, according to Bloomberg generic pricing. [Bloomberg]

FTSE 100 Outlook and Prediction

Its really up to the bulls today for a push past yesterdays resistance at the 6770 area, but we have the 30minute 200ema at 6785 for them to jump just above that. To start with its looking bearish with the 10 minute chart pointing to a decline to the 6740 area where we have some fib support. We are also within the middle of the daily channels so not much bigger picture support or resistance around here. The closest is 6833 for the top of the 20 day Bianca.

The 2 hour chart has also gone bearish after yesterdays declines, however overnight the bulls managed to break the resistance level of 6763 to push up towards the daily pivot at 6776 – which is still valid resistance for the moment. Anyway, will keep this brief for the moment so you can get it ASAP – looking at resistance at 6785 and 6833 and support at 6740, 6724, and then 6700 below that.