Indices

British Index fell strong and fast enough to shorten the opportunity of a quick resumption and new highs penetration. Now we have sales for day #1, and usually buy on such a big candle. Traders need some time to absorb such a wide movement of the price. I’ll use support/resistance rates to make my decisions. Potential support rate is about 6.807-6.817, where 8/21 EMA is situated.

Also use the Fibonacci levels in relation to yesterday's day to gauge the strength of sellers. The lower the price are (1/4-1/2), the higher the chances are for traders to sell.

CAC40, as expected, strayed from the 4.500 resistance zone yesterday struck a bear flag while generating a sell signal. French Index reached the target levels and broken 100 EMA in one day only. It also closed at the very bottom of 4405 — below the previous low of 4407. Now these will be my key levels to repeal off, I expect to see more sales below them. The next visible support is as far as 4320. I recommend you to look at the chart from yesterday’s article.

FTSE 100

FTSE100 on Opteck
 

U.S. Indices interrupted the series of records: S&P is -0.39%, NASDAQ is -0.77%. Despite this fact they are still above all the key moving averages. But there is something worth attention. Russell 2000 (that counts the average price of 2000 companies) fell the most. This Index includes middle-sized and small companies. Usually the Index grows when investors are ready to take a risk. But when they are afraid — it fells. We may say the same about technological and biotechnology companies — they traditionally are considered to be risky. They showed a relative weakness for the first time since the middle of May. Let’s see what will happen next.

Quarterly Earnings Reports

We also have the start of reports season, when companies are to present their achievements and earnings for the previous quarter and also they are to give their predictions for the future quarter and for the end of the year. This will definitely refresh the market situation and give traders a great opportunity to make money. Activity on the market will grow. It is all the more important in the summer, when the vacation season for traders and investors starts.

Apple used to be the best share on the market. On July 4 I mentioned, that shares of this company will attract more buyers and will not lose the active traders’ interest above the point of $94.04. Here’s how it looks on the charts:

Apple