Support 6930 6922 6921 6915 6866
Resistance 6954 6959 6964 6982 7030 7100
In a slightly foregone conclusion, the Fed raised borrowing costs with a rate rise to 0.75% as everyone expected. Initially, markets didn't know how to react, with the Dow rising to 19960, but stalling just short of the magic 20000 and then dropping back to 19750.
A bit of a bounce then saw the Dow stabilise around 19850, the FTSE at 6950 and the S&P at 2260 where they have stayed overnight. It is widely expected that the UK will follow the US lead when it comes to interest rates, however, Mark Carney is still talking about reducing ours even further than the current 0.25%. Next year could be interesting.
For today, I am thinking that we get a bit of consolidation while the markets assess their next move. I have resistance on the 2 hour chart at 6964, coupled with a bearish looking 30min chart, so can see a slow dip down to the 6921 area where we have the bottom of the 10 day bianca and 10 day raff channels.
Below this, for support there is 6865 where we have the 25ema on the daily. This could be an area that's worth a long if seen today. I don't think the "Santa Rally" will appear till next week myself, as its usually been quite late the past few years. So, a dip down before that starts would make sense.
If the bulls were to break through 6965 then 7000 looks pretty likely with 7030 and 7100 above that. I have gone for a small initial rise today as the 10min chart is bullish to start with, showing support at the 6944 area, but pre market short times frames are not the most reliable.
The ASX200 (Australia) had a slow drift down for most of their Thursday session. As such I am favouring the shorts for today, with 6960/6964 a decent looking short entry level. 