FTSE 100, S&P 500 and NASDAQ 100 post US NFP sell-off
FTSE 100 bounces back
The FTSE 100's six straight days of losses to Friday’s 8,153 low has been followed by a bounce on Monday morning. The index is being propped up by Asian stock indices which started their week on a dismal footing but then made back some of last week’s sharp losses, still ending their day in the red, though.
The bounce off Friday’s 8,153 low has taken the UK blue chip index back towards its 55-day moving average at 8,236 which may act as initial resistance.
While last week’s Thursday high at 8,285 isn’t overcome, immediate downside pressure should remain in play.
Minor support ahead of 8,153 sits at Wednesday’s 8,205 trough.
S&P 500 saw worst weekly drop in 18 months
The S&P 500 had a dismal week last week and dropped by around 4.5% from its 5,655 early September high. This is the indices’ worst weekly performance in 18 months and points to further declines being seen.
Minor resistance can be spotted between the late June and early July lows around 5,444 and the 55-day simple moving average (SMA) at 5,508.
A slip through Friday’s 5,385 low would engage the 5,192 late May low.
NASDAQ 100 tries to find support
The NASDAQ 100's near 8% drop from its 19,938 late August high seems to have run out of steam slightly above the 200-day simple moving average (SMA) at 18,308.
Minor resistance lies at Tuesday’s 18,777 low.
Only an unexpected bullish reversal, rise and daily chart close above Thursday’s 19,108 high would have at least short-term bullish implications.
Failure at last week’s 18,308 low and the 200-day simple moving average (SMA) at 18,308 would lead to the August trough at 17,244 being back in sight.