Bonds due for correction, major indices look heavy – FuturesTechs

Clive Lambert of FuturesTechs discusses technical outlook for Gilts, bunds, FTSE 100, S&P500, EUR/JPY and Gold; the conlusion being the major indices seems to have lost bullish momentum, while bonds look poised for correction.

Key points

German Bunds & Gilts – Inverted hammer on the daily chart suggests scope for technical recovery. On a slightly larger scheme of things, 10-yr Gilts look poised to test area around 124.50.

FTSE 100 – Needs to get back above 7000

S&P 500 – 2120 is a big level. Bulls need to retake 2148-2150

EUR/JPY – Looks pretty bearish after facing rejection at descending trend line last week

Gold – could rally but need to be patient. Strong resistance is seen at $1267/Oz