NFP Friday For Buy The Rumour Sell The News

The FTSE 100 was little changed yesterday as investors weighed the biggest interest rate hike from the Bank of England in 27 years, which raised fears of a looming recession. The bulls had managed to reach 7490 from our 7425 support level during the day, however, it dropped back as the interest rate increase news was digested. The bulls will still be keen to try for 7500 though!

That was a good bounce off the 7425 support level and the bulls have managed to continue to defend that area with the drop back after the bell. Today's big event is the USA NFP payrolls with 250k forecast, and unemployment at 3.6%. NFP Fridays can often be a bit weird so stay nimble today! 

Initially today we have support at 7450 with the daily pivot here, along with the 30m coral, and a weak 2h support zone here as well. Should the bears pop it lower to start with then 7423 is the 30m 200ema and we could see a possible overshoot of this down to the daily support level at 7410, and a test of the bottom of the 10d Raff channel at 7408. If we were to do so then a long around this level looks to be worth trying. 

I feel that the S&P 500 will want to go for the 4190+ level, while the FTSE 100 will be trying for 7500 and above still.

Below the 7400 level though, it gets a bit more worrying for the bulls as the bears will be aiming for 7340 or lower, as that would also open up a test of the 25ema on the daily at 7327. I don't expect to drop that low today unless the NFP and other news upset the apple cart. 

For the bulls, they will be looking to break above the recent high at 7495 and test that 7513 level, and possibly even the 7524 R2 level this morning. Generally, things remain bullish, despite the negative backdrop but the FTSE 100 could do with pushing on a bit really. It will be interesting to see if they can break above the 7530 level if it gets that high as that could be quite strong resistance.

S&P 500

As mentioned, the bulls will be looking to test the 4200 level before too long, but we may well see it stumble here a bit. 4189 is R2 for today and 4178 is the daily 200ema so we are coming into some decent resistance levels now. Support-wise, the 4152 level is first up with the daily pivot here, and then the 4135 level that has been defended a few times so far below that. 4121 is the next key level down, and just above S2 at 4115. Should it get to this area then I expect the bulls will mount a bit of a defence here. 

Good luck today and don't forget the NFP news out at 1330 BST. Have a great weekend as well!