Technical analysis for 7th September 2026
We start the week with a mixed but increasingly inflation-sensitive backdrop. Friday's US payroll report was considerably stronger than expected. That pushed Treasury yields higher, increased expectations of a September Fed hike and knocked the S&P 500 down 0.38%, with the Nasdaq losing 0.29%.
But equities aren't collapsing. Asian technology shares are actually rallying this morning because investors are also interpreting the strong jobs report as evidence that the US economy remains healthy. The next major test is now US inflation data later this week, which could decide whether the Fed actually raises rates.
The bigger immediate concern is oil. Brent has climbed to around $97.07 after further US-Iran attacks on vessels in and around the Strait of Hormuz. On the flip side the higher price helps the FTSE100 owing to BP and Shell....
Initially we have a bullish 2h chart with the 10800 looking like it may hold any initial test, with the Hull MA here along with the 30m 200ema. The price is just below the 10823 daily pivot (and in fact the key level from last week) so the bulls will be keen to get the price price back above that if they can.
If the bears were to break 10800 today then 10780 is the green 2h coral, but the daily support level at 10689 does come back into play as well. Might be a big ask to slide that low given oil's strength so 10787 S1 and possibly 10751 S2 are more likely to hold any tests.
I am thinking that we will get an attempt at a bull Monday, at least initially, and then profit taking and a dip later on - with the US closed today for Labor day then the FTSE100 may well be more subdued anyway,
If the bulls do fight back then a rise towards to 10860 R1 level looks likely, and a possible test of the 10922 daily level - if 10895 R2 were to break. These 3 levels are the main ones I am looking at for resistance and shorts. A rise and dip would play out well today and fit the charts well.
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