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.
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.
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.
Support so entry levels for a possible long
Resistance so entry levels for a possible short
6275 daily pivot