Support 6074 6050 6058 6030 Resistance 6119 6151 6184 6195 6264

Good morning. I hope you had a good weekend. Friday saw the FTSE decline for most of the day from 6180 down to the bottom of the Bianca channel at 6095ish. There was a small bounce, then more down before the US dragged it back above 6100. Overnight its held up pretty well while the ASX and Asia have declined. The top of the Bianca channels are 6264 (10day) and 6333 (20day) so these levels look likely initial targets for any bullishness to start this week. 6400 feels like a bit of a big ask at the moment! Greek election saw Syriza win resounding and unlikely victory as charismatic ex-PM Alexis Tsipras is re-elected. Markets should react favourably to that though as its more likely Greece will stick to its promises for the bailouts and remain in the Euro.

US & Asia Overnight from Bloomberg
Asian stocks declined after U.S. shares fell and Federal Reserve officials argued that an interest-rate increase is still warranted this year. Markets in Japan are closed.

The MSCI Asia Pacific Excluding Japan Index lost 0.6 percent to 410.10 as of 10:01 a.m. in Sydney, before markets in China and Hong Kong opened. Australia’s S&P/ASX 200 Index fell 0.4 percent and South Korea’s Kospi index retreated 1.1 percent. New Zealand’s S&P/NZX 50 Index slipped 0.1 percent. The Standard & Poor’s 500 Index lost 1.6 percent on Friday.

Three U.S. policy makers at the weekend separately explained their rationale for supporting a rate increase at one of the Fed’s two remaining meetings of 2015, citing declines in unemployment and other gains in the U.S. economy that should outweigh headwinds from slower growth abroad and turbulent financial markets.

“We expect to remain bearish,” said Stewart Richardson, chief investment
officer at RMG Wealth Management LLP in London. “The Fed seems to be coming in for more criticism from all sides, and with markets falling after a dovish meeting, we believe that their credibility is now being openly questioned. We continue to believe that long-term investors should be holding a lot of cash at this point in the cycle.”

Rate Bets
Traders say the Fed will most likely postpone liftoff until 2016, based on the pricing of federal funds futures contracts. Investors will hear directly from Fed Chair Janet Yellen on Sept. 24 when she delivers a speech in Amherst, Massachusetts.

San Francisco Fed President John Williams, a policy centrist who has worked closely with Yellen, said Sunday that “in my mind, it was a close call” to delay a rate increase at last week’s Federal Open Market Committee meeting.

Williams’ comments on Fox News echoed remarks he made the day before, and chimed with the reasoning of St. Louis Fed President James Bullard and Richmond Fed President Jeffrey Lacker. Both weighed in on Saturday over the FOMC’s vote to leave rates near zero.

Futures on the FTSE China A50 Index fell 0.9 percent in most recent trading. Contract on the Hang Seng Index lost 1.4 percent and those on the Hang Seng China Enterprises Index slipped 1.7 percent.

China Outlook
China’s economy isn’t as weak as it may look, according to a private survey.

“No collapse is nigh” in the aftermath of the stock market plunge and currency devaluation, according to the third-quarter China Beige Book survey published by New York-based CBB International. Capital expenditure rebounded slightly in the period and the services sector showed strength, the report said.

E-mini futures on the S&P 500 slipped 0.1 percent on Monday.

In Greece, Prime Minister Alexis Tsipras will return to power following another emphatic election victory on Sunday, securing a new mandate after he yielded to the demands of European leaders for more austerity in the crisis-hit country. [Bloomberg]

FTSE Outlook

There looks to be pretty decent support at the 6075 area to start the day off, and the 10min chart has moved into bull while I have been wiring this email. If that level holds then i can see a push towards the 200ema at 6150, and possibly 6165 above that. The bulls might have a bit of a challenge there as there is a lot of “short the rallies” going on. Should the momentum stay with the bulls early this week then the top of the Bianca channels at 6264 and 6333 are possible. The ASX (Australia) had a pretty bearish session but has bounced off its lows now, though sometimes the FTSE session plays out as that has – so if 6075 breaks then flip to short and expect a ride down towards 6030 and possible 6009. For the moment though I am thinking an initial rise. Gold is just hitting the top of the 20 day raff at 1141 so could be a short gold, long indices play early this week, especially if gold doesn’t break 1143.