Good morning. A slightly annoying session yesterday that followed the arrows but went a bit lower and a bit higher than the levels i was entering at. Typical. A confirmed case of Ebola in New York overnight, and a big miss on Amazon results after the bell saw the FTSE drop off from he 6430 level it hit around 7pm, to drop and test a fairly decent support level overnight at 6370. As I am writing the bulls are trying to get it back above 6400. Resistance today is that 6430 level initially. Tesco’s woes continue with the black hole having an extra 23million added to it. Going to take a while to turn that ship around now.
Asia Overnight from Bloomberg
Asian stocks rose, with the regional benchmark index extending its first weekly gain in seven weeks, after U.S. earnings beat estimates and data signaled stronger European growth.
The MSCI Asia Pacific Index (MXAP) advanced 0.5 percent to 137.72 as of 9:01 a.m. in Tokyo. The measure is heading for a 3 percent weekly advance after entering a correction last week.
“We are getting good earnings data out of the U.S.,” said Tim Schroeders, a portfolio manager who helps oversee $1 billion in equities at Pengana Capital Ltd. in Melbourne. “The market seems to be moving from one data point to the next data point without conviction and there’s a lot of volatility.”
Japan’s Topix (TPX) index rose 1.3 percent, set for the steepest weekly gain since April 2013, after the yen slumped 1 percent yesterday against the dollar. South Korea’s Kospi index and Australia’s S&P/ASX 200 Index added 0.6 percent, while New Zealand’s NZX 50 Index advanced 0.9 percent. Markets in China and Hong Kong are yet to open.
Futures on the Standard & Poor’s 500 Index were little changed today. The measure rose 1.2 percent yesterday after results from Caterpillar Inc. to 3M Co. exceeded analysts’ estimates.
Caterpillar, the largest construction equipment maker, added 5 percent after raising its full-year earnings forecast amid higher sales of construction machinery in North America. 3M climbed 4.4 percent as the maker of Post-it notes boosted sales in all of its businesses.
Europe Growth
Economic data yesterday suggested the euro-area economy may have moved one step away from another recession. A Purchasing Managers’ Index showed manufacturing in the region unexpectedly grew this month, and Spain’s third-quarter unemployment dropped to the lowest level since 2011. In Germany, factories rebounded from a slump in September.
Fewer Americans filed applications for unemployment benefits over the past month than at any time in 14 years as an improving economy prompted employers to hold on to staff, another report showed.
Futures on Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index both added 0.3 percent in their most recent trading session. The Bloomberg China-US Index of Chinese stocks traded in the U.S. climbed 0.5 percent yesterday. [From here]
FTSE Outlook
Todays pivot is 6388 so there is initial support here, especially as the lower support at 6370 has held overnight. The key level for the bulls to break is 6430 – yesterday out of hours high and 6437 were we have the 25ema on the daily today. I have gone off the 10min chart for todays arrows, as there is also PRT resistance at 6425 with 2 channels there, so as such a short there with a stop just above the 25ema could be fruitful. I might well add at 6436. If the bulls manage to exceed this level then the top of the 10 day Bianca channel is 6506, and the 20 day Raff at 6520. I have gone with 6370 holding as support for todays session and actually bouncing off the pivot area instead (maybe go in at 6388 and 6370 at half stakes on each and see if the bounce area holds). If the 6430 area is tested a 3rd time then I expect it to break. If 6370 does break then the lower supports are 6357 and 6330. The bottom of the 10 day Bianca is 6217 – so if it got really bearish….. Remember its Friday so expect a little bit of weirdness as per usual!
Support so entry levels for a possible long
- 6387 daily pivot
- 6370
- 6357
- 6330
- 6217
Resistance so entry levels for a possible short
- 6424
- 6430
- 6437
- 6506