Good morning. I was a tad early at 6730 yesterday but am still holding that and the 6716 long as well. I honestly didn’t expect to see 6715 but there you go, the bears drove it right down in the end having seen the rubbish US GDP figure. Having now bounced from that area the charts are saying that it needs to break 6755 to reach 6775, which would be good. As such I’m taking some profit at this 6755 area.
The Dubai stock market bounced back yesterday, gaining 6.1% having had a 3 day slump and entering a bear market. Will the US and FTSE bounce back up now they have tested their lows at 1945 and 6715?
Asia Overnight from Bloomberg
Asian stocks rose, with the regional benchmark index headed for its biggest gain this week, amid optimism theU.S. economy is emerging from a worse-than-estimated contraction last quarter.
The MSCI Asia Pacific Index (MXAP) gained 0.6 percent to 145.11 as of 12:53 p.m. in Tokyo, with all of its 10 industry groups advancing. U.S. stocks rose for the first time in three days as investors watch data for signs of a recovery after a report yesterday showed the economy shrank the most in five years last quarter. Economists predict a gauge of personal spending by Americans today will show gains.
“The U.S. market didn’t react negatively to the revised GDP data, which bodes well for markets here,” said Masaaki Yamaguchi, equity market strategist at Nomura Holdings Inc., Japan’s biggest brokerage by market value. “Asian markets are doing OK after getting a correction yesterday.”
Futures
Futures on the Standard & Poor’s 500 Index were little changed today. The stock measure gained 0.5 percent yesterday even as a report showed that U.S. gross domestic product shrank 2.9 percent in the first quarter. Orders for business equipment climbed in May, a sign that corporate investment is helping revive the economy after slumping at the start of the year.
Americans returned to stores and car dealerships, companies placed more orders for equipment and manufacturing picked up as temperatures warmed, indicating the early-year setback was temporary. Combined with more job gains, such data underscore the view of Federal Reserve policy makers that the economy is improving and is in less need of monetary stimulus.
FTSE Outlook
So, as mentioned Im still long currently, looking to take some profit at 6755ish and 6775. With the US rebounding off the lows then that original target of 6795 is still possible. Those are my resistance levels for today. We are just slightly above the daily pivot at 6745 so if the bulls do put in a good performance (above the pivot is bullish, though being so close its pretty weak) then we could be testing the top of the daily Bianca channels again before too long. Support wise, after the pivot, is the 6715 level being yesterdays low, and also the bottom of the Bianca channels today. If 6715 were to break then the next support is 6670.