Yesterday, the World Bank cut its global growth forecast amid weaker outlooks for the U.S., Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates.
The FTSE 100 closed slightly above it open yesterday, whilst the DAX, once it climbed to the 10030 area, stayed pretty flat for most of the day. The S&P 500 levelled off around 1950 and also didn't really do much. Pausing for breath or turning over? With the absence of any dip off 6870 yesterday I think we may see a push higher before another dip - opposite to yesterday really.
FTSE Outlook
Despite the pause in the climb to new highs, we have crossed back to above the daily pivot which is 6861 today (not that far below where we are as I write this). As such that could be initial support and the absence of bears at 6870 resistance yesterday makes me think that we might try for 6900, if the bulls can break the 6880 level which seems to be holding them back at the moment. Below 6861 we have support at 6825. Bit frustrating to get stopped out on that long yesterday but nature of the beast.
We have the Bianca channel tops at 6893 and 6896 today, slowly creeping up each day, so that area should be worth a short, later on if we get that high.
So, today I am thinking an initial rise to that 30 minute channel and the glass ceiling area at 6880, dip to the pivot at 6861, then a rise to 6900ish. This might tally with the Dax hitting 10070 and S&P hitting 1956.
Daily Raff Channels
Bianca Trends
Gold
Gold is holding above its support at 1245, as can be seen on the daily chart. Initial resistance is 1263, then 1269 if that breaks, whilst support is 1252. If indices do start to drop then gold should rise further, though the daily EMAs are still bearish, despite this bounce.
S&P
Based on the candles in the chart below, the S&P 500 treading water around the 1950 area. I am thinking that today might see a pop up to 1956 then dipping back to 1950, 1945 possibly. That could fit with the FTSE outlook with a rise to 6900 then dip again. A short at 1955/1956 area should be alright I think with a stop at 1958 - if it breaks through 1956 then it will most likely be on its way to 1974.
The daily pivot is 1948.7 so there is support there, and the bottom of the Raffs at 1943. A move below 1938 (not likely today barring unexpected bad news) opens up 1930 and 1920.
Ideally a short at 1956 today.
DAX
I was hoping that 10040 on the DAX yesterday would make for a decent short, but the rise stopped just below. Movement above yesterdays high at 10034 still has 10040, though a better level would be 10070 - worth a short there given the absence of bears so far. If 10000 breaks again then 9980 and 9950 are supports.
The daily pivot is 10016 so that should hold first thing for a little run higher, otherwise a bounce off 10000 where there is the bottom of a channel on the 30 minute chart.