Support 6818, 6810, 6782, 6750 Resistance 6850, 6875, 6900, 6935

Good morning. Bit of a weak start to Monday on yet more will they won’t they Grexit rumours and talk. The Greek finance minister is meeting his Eurozone counterparts on the 11th so it will be interesting to see what comes out of that. Anyway, despite not quite reaching the bottom of the Bianca channel supports at 6760ish, we did indeed bounce and are around 6830 yet again as I write this (just past midnight UK time, 10th Feb) with a daily high at 6849.

US & Asia Overnight from Bloomberg
(Bloomberg) — U.S. stocks fell, while gold and the yen advanced amid demand for haven assets as Greece’s rejection of its bailout terms fueled concern over the prospect of fresh turmoil in the euro area. Crude oil rose.

The Standard & Poor’s 500 Index dropped 0.4 percent by 4 p.m. in New York, after gaining 3 percent last week. Gold futures rose 0.6 percent, while U.S. crude added 2.3 percent in a third day of gains. The yen rallied from a four-week low versus the dollar, and the ruble climbed amid Ukraine cease-fire talks. The Stoxx Europe 600 Index slid 0.7 percent, while Greece’s three-year bond yields increased to the highest level since the nation’s debt was restructured in 2012.

Greek Prime Minister Alexis Tsipras vowed to negotiate an end to the austerity program before talks with creditors, as European leaders urged him to pare back his ambitions. President Barack Obama said the U.S. is examining “all options” for aiding Ukraine, including supplying defensive weapons, should the latest round of efforts fail to spur a resolution with Russia. OPEC cut its forecasts for global oil-supply growth in 2015, citing a slowdown in U.S. drilling.

“Concerns about Greece remain an issue, and until we get past that, we’re likely to remain in a trading range,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said by phone. “Until some of these Greece headlines can be removed from the equation, that’s likely to inhibit short-term market upside.”

Weekly Rally
The S&P 500 rose the most since mid-December last week as oil rebounded amid a falling U.S. rig count. The index fell on Friday, reversing intraday gains that put it within 1 percent of its December all-time high. Stocks slid in January amid concern that slowing growth overseas will hurt the U.S. economy, while oil’s drop to an almost six-year low and the strengthening dollar weighed on some corporate results.

Among stocks moving Monday, Johnson & Johnson tumbled 1.3 percent after the Swiss National Bank cut its holdings of the health-care company. Oil’s rally led to declines among consumer shares. Alcoa Inc. fell 5.6 percent after JPMorgan Chase & Co. downgraded its rating on the aluminum producer’s shares. Utilities in the S&P 500 sank 0.9 percent after falling the most since 2011 on Friday as Treasury yields advanced.

Hasbro Inc. jumped 7 percent after posting fourth-quarter profit that topped analysts’ estimates as the company sold more products marketed at boys boys, such as Transformers and Nerf.

Europe Equities
A government report on Friday showed the U.S. added more jobs than forecast in January, capping the biggest three-month gain in American nonfarm payrolls in 17 years, while workers’ earnings also jumped.

In Europe, the Stoxx 600 fell for the first time in six days, with utilities and carmakers declining the most. Greek equities slipped for a third day after completing their biggest weekly gain since November. Alpha Bank AE and Piraeus Bank SA lost more than 6 percent. Italy’s FTSE MIB Index and Spain’s IBEX 35 Index declined more than 2 percent. Germany’s DAX Index retreated 1.6 percent after the nation posted a record current-account surplus in 2014.

“The word to describe the situation would be fear,” said John Plassard, vice president at Mirabaud Securities LLP in Geneva. “Tsipras announced Greece would not accept an extension of the financial-assistance program. This raises concerns of tensions and fears for the worst for Greek banks and European banks.”

Greek Bonds
Greek government bonds fell for a fourth day. The rate on three-year notes jumped 308 basis points, or 3.08 percentage point, to 21.08 percent. Ten-year yields increased 64 basis points to 10.75 percent. Those moves helped drag Italian bonds lower, with 10-year yields rising seven basis points to 1.65 percent as investors shunned the securities of the euro area’s most-indebted nations.

Premier Tsipras vowed on Sunday to increase Greece’s minimum wage, restore the income tax-free threshold and halt infrastructure privatizations in a speech that set him on a collision course with the country’s creditors. Finance Minister Yanis Varoufakis meets with his 18 euro-area counterparts on Feb. 11 at an emergency meeting in Brussels.

“How he’s going to fund these pledges and still convince the ECB to allow Greek banks to use the central bank’s collateral is beyond me,” Peter Dixon, global equities economist at Commerzbank AG in London, said by phone. “We’re still trying to move toward a solution but we’re not making much progress. Under those circumstances, markets are going to suffer.”

Haven Assets
The selloff in Greek assets also helped demand for haven assets in Europe, with yields on Germany’s 10-year bunds dropping two basis points to 0.35 percent and the 10-year gilt rate declining three basis points to 1.61 percent.

The yen strengthened for the first time in three days, appreciating 0.4 percent to 118.60 per dollar. The currency touched 119.22 on Feb. 6, its weakest level since Jan. 12. The euro was little changed at $1.1328 after sinking 1.4 percent versus the greenback on Friday.

Gold futures for April delivery climbed to $1,241.50 an ounce, after the precious metal’s worst weekly performance since October. Contracts dropped 2.4 percent in the previous two sessions amid signs of strength in the U.S. economy, via the jobs data. Silver futures for March delivery advanced 2.3 percent to $17.07 an ounce, the biggest gain for a most-active contract since Jan. 30.

The MSCI Emerging Markets Index fell for a second day, losing 0.6 percent. Benchmark gauges in Turkey and Poland slid more than 0.6 percent.

Russian Markets
Russia’s Micex stock index slipped 0.4 percent after four days of gains. Discussions over the situation in Ukraine resumed Monday, with the aim to work toward a summit for the leaders of Germany, France, Russia and Ukraine in Minsk, Belarus, set for Feb. 11. Russian President Vladimir Putin said all sides must first agree on their positions before talks can take place.

Russia’s central bank is unlikely to reverse last month’s surprise interest rate cut as inflation is set to slow after it accelerated to the fastest in almost seven years, according to Governor Elvira Nabiullina.

The Hang Seng China Enterprises Index of mainland Chinese companies listed in Hong Kong dropped 0.4 percent Monday. The Shanghai Composite Index rose 0.6 percent amid speculation the start of options trading will boost demand for large-capitalization shares.

Chinese imports fell by the most in more than five years in January, declining 19.9 percent from a year earlier, while exports unexpectedly slid 3.3 percent, the customs administration in Beijing said Sunday.

Oil Advance
Saudi Arabia, the world’s largest oil exporter, had the outlook on its credit rating cut to negative by Standard & Poor’s as a slump in crude prices dims the nation’s growth prospects.

West Texas Intermediate oil advanced to $52.86 a barrel following a weekly gain of 7.2 percent. U.S. crude has rebounded amid speculation a declining rig count in the U.S. signals output will slow. OPEC on Monday cut its forecast for U.S. oil production this year as lower prices curb drilling.

Oil may drop more than 50 percent to “the $20 range” by the start of the second quarter as oversupply fills storage tanks close to capacity, according to analysts at Citigroup Inc.

Signs of a slowdown in U.S. drilling don’t mean the crude glut will be eliminated, Edward Morse, Citigroup’s global head of commodity research, said in a report e-mailed Monday. [Ref]

FTSE Outlook

Unfortunately Google are not on the ball with updating their historical prices that Bianca uses, so the daily channels haven’t updated today. The data comes from here, if it updates I will send round a Bianca chart later.

Anyway, Tuesday has support at 6810 and a move below this targets the 6782 area as you can see on the chart below – thew 10 minute showing some good support at this area so should see a bounce (i suspect that the Bianca channels will be around this area once its updated and calculated them), though below this 6750 is the next level – the bottom of the 10 day Raff and the 25ema. Resistance wise, Mondays high at 6849 is the first hurdle for the bulls, with 6875 above that, then 6900. I have plotted the arrows on the chart below for 6810 holding an initial early test, but of the bulls fail to push on from that area and break the 6850 area then a dip down to 6785 looks pretty likely. I haven’t put a short in there for the trade plan but it might be worth watching it as it happens to see what it does, especially at the top of that 10 minute channel at 6832, as if the bulls break that then the pink arrow is highly likely. Preference for blue arrows though and a decent bounce from the 6782 area if seen.

The 30minute chart is showing a bullish coral line just starting now, also showing support at 6810, and an EMA cross over to bullish, having been bearish for all of Monday. Bull Tuesday anyone?