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Good morning. Well we got the dip and the rise, though it went a bit lower than the 6255 area, just pinging the stop level of course, before rising again to test 6300. That 6238 sets the low support for today, and we have resistance at the top of the 20 day Bianca at 6322. Apple results helped the bulls last night, with 4Q EPS $1.42 versus $1.30. Overall it felt a little bit more positive yesterday, the bears had the chance to really drive it down with 6255 breaking, and failed. I expect we will see a test of 6322 today. Ebola is still simmering in the background but not got to a mass panic stage. There isn’t a divi applied tonight anymore, but tomorrow instead, just for your info.

Asia Overnight from Bloomberg
Asian stocks fell, paring gains after yesterday rising the most in two years, as investors awaited a slew of Chinese economic data and weighed U.S. corporate earnings.

The MSCI Asia Pacific Index (MXAP) slid 0.1 percent to 136.49 as of 10:06 a.m. in Tokyo after soaring 2.2 percent yesterday for its biggest gain since September 2012. Prices for the index were delayed this morning by a technical issue, according to MSCI Inc. The region’s biggest economy is due to publish reports today on gross domestic product, industrial production and retail sales. Standard & Poor’s 500 Index futures lost 0.1 percent after the underlying gauge completed a three-day rebound from last week’s selloff.

“Asia today is watching one of the biggest data drops of the year as China’s third-quarter GDP figures are released,” Evan Lucas, Melbourne-based market strategist at IG Ltd., wrote in a note. “Corporate earnings optimism is certainly driving the U.S. market.”

Japan’s Topix (TPX) index slid 0.4 percent after jumping 4 percent yesterday, the most since June 2013, after a report the nation’s $1.2 trillion pension fund will boost domestic stock holdings.

South Korea’s Kospi index lost 1 percent. Australia’s S&P/ASX 200 Index added 0.1 percent, while New Zealand’s NZX 50 Index advanced 0.7 percent. Markets in China and Hong Kong are yet to open.

U.S. Earnings
The S&P 500 advanced 0.9 percent yesterday as optimism over corporate earnings spurred a rebound from last week’s selloff. Apple Inc., which rose 2.1 percent during regular trading, gained after exchanges closed on higher-than-forecast sales.

Profit for S&P 500 companies probably rose 5.9 percent in the third quarter — a forecast that’s been revised upward from an increase of 4.8 percent as of Oct. 10 — and sales increased 4 percent, according to analysts’ projections compiled by Bloomberg.

Futures on Hong Kong’s Hang Seng Index rose 0.1 percent in their most recent trading session, and contracts on the Hang Seng China Enterprises Index gained 0.2 percent.

China’s gross domestic product probably expanded 7.2 percent in the third quarter, the slowest pace in more than five years, according to Bloomberg’s survey of economists ahead of data scheduled for release today.

Thirteen of 22 economists polled last week said China will seek expansion of about 7 percent next year, down from this year’s 7.5 percent goal. Sixteen said the government should change its targeting policy, with nine indicating a range would be better and seven suggesting targets be scrapped altogether in favor of projections or assumptions, as most other nations provide.

FTSE Outlook

FTSE 100 Prediction

FTSE 100 Prediction

Todays pivot is 6275 which we have just dipped under slightly that is now resistance; we also have the 25ema on the 30 min there, so I am thinking an initial short this morning for a dip down to 6250 and 6238. We have a few little channels in play on the 10min and 30min charts, on the 10min support is at 6260 and 6250, while the 30min has support at 6260 then 6210. I’m going to run with the 30minute today and go for a dip front he pivot initially at 6275, down to yesterdays low. If that level holds then we should get a decent rise today, wight he first main hurdle being the 30min channel at 6300, then 6322. If the bulls can break above that then 6350 and 6400 are the next main resistance levels. Might be a big ask to get too bullish today, but the fact that the bulls fought back yesterday shows a bit of strength. Maybe a bit too obvious but it would be good if prices tested the top of the 20 day Raff channel and the 25ema on daily at 6420 before more downside.

Raffs

Raffs

Support so entry levels for a possible long
6238
6200
6180
6135
Resistance so entry levels for a possible short
6275 daily pivot
6300
6312
6322
6350
6400

Good morning, hope you had a good weekend. Well it certainly “looks” like 6070 is the low for the moment, however the FTSe isn’t out of the woods yet (nor the S&P and Dax as per below analysis) as the daily EMAs are still bearish, and the top of the Raff channels will probably be shortly in play. Overnight the FTSE has dropped off the top of the 20 day Bianca at 6350. Over the weekend the financial press took a bit of a break after such a hectic week. Todays pivot is 6270 so we have initial support there to watch, with resistance at 6350. I think we may well get an initial dip to the 62870 (pivot)/6280 (200ema on 30m) then a rise today. We have Apple results out later – always one that is eagerly watched.

Asia Overnight from Bloomberg
Asian stocks rose, with the benchmark index rebounding from an almost seven-month low, after U.S. equities rallied. Japan’s Topix (TPX) index surged amid optimism the nation’s $1.2 trillion pension fund will buy more shares.

The MSCI Asia Pacific Index (MXAP) climbed 1.3 percent to 135.44 as of 9:15 a.m. in Tokyo, buoyed by a 2.8 percent jump for the Topix. The regional gauge slumped last week to the lowest since March, extending its drop to more than 10 percent from a July 29 high, the common definition of a correction. Concern about an ailing European economy, the timing of Federal Reserve interest-rate increases and the spread of the Ebola virus wiped about $2.8 trillion off the value of global stocks in October through last week.

“Shares will bounce back in Asia,” said Angus Gluskie, who oversees about $550 million as managing director at White Funds Management in Sydney. Fears about Ebola and Europe’s growth are overblown, he said. “I think people will become more comfortable this week.”

Pension Fund
Japan’s Topix headed for its steepest rally in more than a year as the yen extended its drop, trading at 107.07 per dollar. The Government Pension Investment Fund will raise its allocation target for domestic shares to about 25 percent from 12 percent, the Nikkei newspaper reported Oct. 18.

South Korea’s Kospi index, Australia’s S&P/ASX 200 Index and New Zealand’s NZX 50 Index each advanced 1.1 percent. Markets in Hong Kong and China are yet to open.

Futures on the Standard & Poor’s 500 Index rallied 0.4 percent today. The underlying measure rebounded 1.3 percent on Oct. 17 as earnings beat estimates, consumer confidence reached a seven-year high and investors speculated that central banks will add more economic stimulus.

The S&P 500 is still down 6.2 percent from a record in September on concern a global slowdown will hurt the American economy just as the Fed weighs when to raise interest rates. Pressure is mounting for ECB stimulus such as government-bond purchases as the 18-nation euro area struggles to rebound from a sovereign debt crisis and subsequent austerity measures.

Futures on Hong Kong’s Hang Seng Index added 0.6 percent in their most recent trading session, and contracts on the Hang Seng China Enterprises Index jumped 1 percent. The Bloomberg China-US Index of Chinese stocks traded in the U.S. soared 1.2 percent on Oct. 17.

China Economy
China’s top Communist Party officials gather in Beijing this week for their fourth plenum, with an update on gross domestic product for Asia’s largest economy due tomorrow. China’s economyprobably grew 7.2 percent in the third quarter from a year earlier, according to the median of 47 economists’ estimates compiled by Bloomberg. That would be a retreat from the 7.5 percent expansion recorded for the second quarter and the slowest pace of growth since 2009.

The People’s Bank of China plans to inject about 200 billion yuan ($32.7 billion) into some national and regional lenders, a government official familiar with the matter said Oct. 17.

FTSE Outlook

FTSE 100 Prediction

FTSE 100 Prediction

Todays pivot is 6270, and we have the 200ema on 30min at 6280. I am expecting an initial dip to this area before a bounce. If that 6270 level breaks then 6250 and 6180 are the next supports to watch. Though we are experiencing a pretty decent bounce off the 6070 area I don’t think that the bears are all done, mainly as we are nearing the top of the Raff channels on the Dax (10day 9052, 20 day here at 8880), and the S&P (1920/1925), but also the daily EMAs on all are still bearish, and I would expect a touch of the 25ema to trigger some selling. That level for the FTSE is 6457 today, along with the 6450 top of 10 day Raff.

Looking at the shorter timeframe 10 min ties in quite well with the 30min at the moment, as its within a decent PRT channel, and you can see below. The bottom of the channel is around the 6260 area, so a long around there could also work out if 6280 is broken.

FTSE 10 min

FTSE 10 min

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