Political worries again US Russia | 7125 7155 resistance | 7075 support

FTSE Support 7112 7108 7103 7099 7081 7076 7073 6984
FTSE Resistance 7124 7140 7146 7148 7155

Good morning. Well here we are on the last trading day of 2016 and what a year it has been. Events that had unpredictable results (in the main) such as Brexit and Trump, as well as a pretty bullish year overall. Once the markets are in the bull trend nothing can derail them! I am thinking that we will get a rise to the 7155 area today to close out the year – the 10min and 30min charts are slightly bullish to start with. Key will be if the bulls can break the 7125 resistance level this morning.

US & Asia Overnight from Bloomberg

The euro spiked higher as the dollar weakened for a second day and oil advanced in thin end-of-year trading. Japan’s Topix index capped its first annual loss since 2011, while Hong Kong shares rallied.

The Bloomberg Dollar Spot Index shifted lower after reaching the highest level in more than a decade earlier this week. Japan’s benchmark index ended lower for the year, despite a second-half rally, while Hong Kong shares turned positive for 2016. Oil was set for its first annual advance in three years. The S&P 500 Index ended little changed Thursday following the announcement of new American sanctions against Russia over election hacks.Trading has been thin across the globe during the last week of the year, with volumes in crude oil, equities and currencies all below average. Investors may be reallocating money as they assess asset moves in the wake of the U.S. election that took the dollar to multi-year highs, sent Treasuries tumbling and spurred a rally in American equities.

“Asian markets could see another day of mixed performances on the final trading day of the year with little inspiration for price direction,” said Jingyi Pan, a market strategist at IG Asia Pte. “The market is likely to be repositioning for the New Year with U.S. markets and that could place some pressure on markets that have underperformed lately.”

Currencies

The euro rallied as much as 1.6 percent before paring its advance to 0.5 percent and trading at $1.0541 as of 3:08 p.m. in Tokyo.
The yen fell 0.1 percent to 116.70 per dollar, erasing an earlier advance of 0.4 percent. The currency was up more than 20 percent for the year in August, but has pared that to 3.2 percent.
The Bloomberg Dollar Spot Index slipped 0.2 percent after dropping 0.5 percent Thursday, although it remains up 2.9 percent for the year.

Stocks

The MSCI Asia Pacific Index rose 0.2 percent, heading for a 2.4 percent advance for the year, its first annual gain since 2013. Pakistan was the region’s best market in 2016, jumping 45 percent, while China was set for the worst performance.
Japan’s Topix closed little changed, ending 2016 with a loss of 1.9 percent. The Nikkei 225 index declined for a third day.
India’s S&P BSE Sensex added 1 percent in a second day of gains, set for a 1.9 percent climb this year.
Australia’s S&P/ASX 200 Index dropped 0.6 percent, paring its annual gain to 7 percent, while New Zealand’s S&P/NZX 50 pared its increase for the year to 8.8 percent. South Korea is closed for a holiday. The Kospi Index finished Thursday with a 3.3 percent advance for 2016.
Hong Kong’s Hang Seng Index rose 1.2 percent, wiping out its losses for the year. The Shanghai Composite Index added 0.1 percent, paring its yearly decline to 12.4 percent. The Hang Seng China Enterprises Index jumped 1.2 percent, trimming its annual loss to 2.5 percent.
The S&P 500 fell less than one point to 2,249.26 Thursday, the lowest close since Dec. 8. It is up 10 percent for the year. The Dow Jones Industrial Average slipped to 19,819.78, maintaining a 14 percent advance this year.
The Stoxx Europe 600 Index lost 0.4 percent after closing Wednesday at the highest level in a year. The gauge is down 1.5 percent for 2016.

Commodities

Crude futures gained 0.3 percent to $53.95 a barrel, after Thursday’s 0.5 percent decline. Prices are up about 45 percent this year. Supply cuts from OPEC and other producing nations next month are intended to stabilize the market and reduce swelling global inventories.
Gold rose for a fifth session Friday, adding 0.3 percent to $1,161.09 an ounce. The metal has rebounded 2.8 percent from an 11-month low, and is up more than 9 percent for the year.

Bonds

The yield on 10-year Treasury notes was little changed at 2.47 percent after dropping three basis points Thursday. It slid to 2.46 percent earlier in the week, the lowest since Dec. 14.
The equivalent Australian yield was down one basis point at 2.77 percent, while the yield on similar New Zealand notes dropped five basis points to 3.33 percent.
[Bloomberg]

FTSE 100 Outlook and Prediction

For today I am thinking that we will get a bit of a bull charge to test the 7155 level at some point. The however is that the bulls need to break the large resistance at 7125 to do so. We have held the 7090 support area overnight and had a bit of a rise and are not far off testing it as I write this so may well break through.

If the bears break the 7090 support area then 7050 is the next support, with 7030 below that. We then start looking for the 25ema on the daily at 6984 for the next reaction.

So, fairly simple today, just thinking that I will maintain a bullish bias for a rise towards 7155 to close the year.