Support 6848, 6820, 6774 Resistance 6872, 6895, 6910, 6935

Good morning. Well that short worked out just fine from 6847 for a few points after the initial rise, but then the bulls came charging back and we hovered around 6850/6860 for the rest of the day (and evening, and overnight too). Not very exciting for the FTSE! NFP news out today at 13:30 – will it beat 200k again? Expect volatility around here anyway. Most of the main news recently has been about Greece and the whole will they, won’t they, what will they do over the debt. Initial resistance is at 6872 to start with today, and support from the pivot at 6848. 6910 is the top of the 10 day Raff, and unfortunately Google haven’t updated their figures again so Bianca can’t update.

Asia Overnight from Bloomberg
(Bloomberg) — Asian stocks followed U.S. equities higher, with the regional benchmark index extending its weekly advance, as materials and energy shares gained amid higher oil prices.
The MSCI Asia Pacific Index rose 0.4 percent to 142.14 as of 9:01 a.m. in Tokyo, heading for a 1.3 percent increase this week after the Reserve Bank of Australia cut interest rates to a record low and China reduced banks’ reserve ratios. The European Central Bank will allow its Greek counterpart to provide as much as 59.5 billion euros ($68 billion) in emergency funding for lenders, a euro-area central-bank official familiar with the decision said. West Texas Intermediate crude futures climbed as much as 2 percent today after rising 4.2 percent yesterday.

“Greece is still an issue but investors are choosing to focus on the positives,” Tony Farnham, a strategist at Paterson Securities in Sydney, said by phone. “There would probably be a compromise, whether extending the repayment period on Greek debt or cutting interest rates. There’s further upside in equities given the wave of global monetary easing by central banks.”

Japan’s Topix index added 0.8 percent. South Korea’s Kospi index slid 0.2 percent. Australia’s S&P/ASX 200 Index increased 0.4 percent. Markets in Hong Kong and China have yet to open, while New Zealand is closed for a holiday.

The Shanghai Composite Index retreated 1.2 yesterday after rallying as much as 2.4 percent, as the cut in banks’ reserve-ratio requirements failed to soothe investors’ concern that the economic slowdown is deepening.

Futures on the Standard & Poor’s 500 Index were little changed. The U.S. equity benchmark index added 1 percent yesterday, erasing losses for the year, as oil resumed its rebound and Pfizer Inc. announced a $17 billion deal.

Crude prices are swinging the most since April 2009 as producers reduce spending to keep U.S. production from growing beyond a three-decade high. Prices have moved an average of $1.70 a day this year, up from 92 cents during the first 24 days of 2014.[Ref]

FTSE Outlook

With the current level just above the daily pivot at 6848 I have plotted for an initial rise up to the first resistance level around 6872, and the top of the 10 minute channel at 6880. So splitting the difference and going for a short at 6875. As its Friday I am using reduced stakes, and also bear in mind we have NFP at 13:30 today so will get volatile then. Forecast is for 230k versus 252k previously. Above the 6880 area of resistance the next level of note is 6895 and then the most recent high at 6910 – this latter one is also the top of the 10 day Raff. If it pops above this then 6925ish is worth a short, as thats the mid point of the 20 day Raff.

I have plotted a fall from the first resistance level though, and expect a dip back down to the pivot area that has held as support overnight – 6848. Below this then next support is 6820 and then 6775. The bottom of the 10 day raff and the 25ema on daily are both at 6726, – not sure it will dip that low today though… famous last words maybe!?