Support 6621, 6608, 6560, 6556, 6520 Resistance 6633, 6649, 6659, 6681, 6705

Good morning. Well that was quite a tight range in the end yesterday and after the initial dip and rise we had a slow drift down from the 6632 area. Unfortunately the 6610 long didn’t quite reach the 6644 target but still netted a few points. It was probably treading water waiting for todays UK unemployment figures for direction, though closing where it did does leave things bullish for a rise to the top of the 20 day Bianca at 6705 (though 6681 to break first). There is also the 10 day Raff at 6700ish as well. The US markets are holding onto their gains as well and it looks like after the volatile October “they” are trying to keep November sane and rational.

Asia Overnight from Bloomberg

Asian stocks rose for a fourth day as Japanese shares climbed after the yen depreciated to a seven-year low amid speculation the nation will delay raising its sales tax again.

The MSCI Asia Pacific Index (MXAP) added 0.3 percent to 141.38 as of 9:02 a.m. in Tokyo. The Topix index advanced yesterday to its highest close in six years amid reports Prime Minister Shinzo Abe is considering postponing a second increase to the levy and preparing to call snap elections next month.

“The market favors Japanese equities in terms of the additional stimulus announced by the Bank of Japan recently along with talks of an early election and possible push back of the sales-tax increase,” Tim Schroeders, a portfolio manager who helps oversee $1 billion in equities at Pengana Capital Ltd. in Melbourne, said by phone today. “Abe may come through the elections with increased power and a fresh mandate for change. It will be interesting to see how far he can go.”

Investors are awaiting a Nov. 17 report on Japan’s third-quarter economic growth, which will help Abe decide on another sales-tax increase next year. Abe told reporters yesterday at the Asia-Pacific Economic Cooperation forum in Beijing that he hadn’t made a decision on dissolving parliament.

The Topix climbed 0.8 percent. The broad equities index has added 8.4 percent since Oct. 30, the day before the Bank of Japan expanded stimulus and the nation’s pension fund said it will boost domestic stock holdings.

South Korea’s Kospi index was little changed. New Zealand’s NZX 50 Index gained 0.2 percent. Australia’s S&P/ASX 200 Index slid 0.5 percent. Markets in China and Hong Kong have yet to open.

U.S. Rally
Futures on the Standard & Poor’s 500 Index dropped 0.1 percent. The equity benchmark yesterday added 0.1 percent, rising for a fifth day and extending an all-time high.

The S&P 500 has rebounded 9.5 percent from a six-month low in October amid better-than-estimated corporate results and signs the economy is weathering a global slowdown and the end of the Federal Reserve’s bond-buying program. About 5.5 billion shares traded hands yesterday, the least in two months.

FTSE Outlook

Todays pivot is 6621 which we have just dropped below as I am writing this, so its flicking between support and resistance initially, though I’d err towards resistance looking at thee moving averages on the 10 and 30 minute. As such a dip to the next support at 6608. If this level breaks then the bottom of the Bianca channels, both 10 and 20 around 6560 is the next level to watch. As such, if the bulls are going to build on yesterday then they will need to bounce it from this area of seen. Otherwise 6520 beckons. Though yesterday set in motion a bullish slant, the 50 day Bianca channel, and thus longer term trend, has its top at 6597 (its the blue channel on the Bianca chart below), so the bulls really need to break up today, and exceed yesterdays high of 6633, which would target 6650 (just above the daily 200ema at 6644 as well), 6660, 6680 and then the 6705 area. That said they are certainly trying to break out of that longer term trend, and should 6633 break then the ball will be in the bulls court.