FTSE 100 End of quarter end of month – bearish


Today is end of the month and also end of quarter and as such we may well see a weaker day on the markets. Friday we also have the US jobs report so we may well have lower volumes ahead of that. Plus a lot of sore heads after England’s victory last night! Generally I am expecting a weaker day ahead today and the FTSE 100 may possibly dip as low as the daily support at 7030 though I do like a hold of the 7050 level as we have the key fib at 7047. 

Yesterday saw the 2 hour resistance levels at 7117 hold and we have had a small dip from them so far, and the coral remains red with 7106 resistance for the moment. We also have R1 at 7117, just below yesterdays high, and if that was seen then it would set up a decent double top for the bears to capitalise on.

Initial support is at the 30m coral at 7084 though it tested  it yesterday after the colour change and bounced already so the second test will be a bit weaker. As such a move below this level will likely see 7061 S1 tested in fairly short order, 7047 below that as mentioned, then the daily support at 7027. That is also just below S2 at 7035.

Maintain a bearish stance for today really. 

If the bulls were to push up past the 7120 level though then 7142 is the key fib level, and then the 7170 level above that though I don’t think we will push that high today. I am expecting the S&P 500 to slide a bit, maybe as low at the S3 level at 4265 if the 2h coral support at 4288 is broken. 

The 2h DAX chart is bullish to start with, and has support at 15638 though a slide down to the key fib and S1 area at 15570 looks like it will pan out initially, especially if the bears can break the daily pivot support at 15664 to start with.

So, expecting a bit of consolidation/bearishness today really, but as long as the support levels of 7030, 4265 and 15570 hold then we may well still have some bullishness ahead in the next few sessions. The bulls have certainly fought back well from that mid June bear attack. 

Good luck today. 

FTSE 100 End of quarter end of month – bearish

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