The FTSE 100 registered a new month low at 7221.3 with very few greens on the board to close at 7273.8. Miners again at the bottom as commodity prices are still weakening, with Ashtead (rental firm) leading the index following a rise in first quarter profit, benefiting from a weaker pound to boost results. US-China trade war still developing as the Chinese escalate by requesting authorization from WTO to impose tariffs on the US (meeting is set on Friday 21st). In other news, the unemployment rate came in at 4% matching expectations, the average earnings including bonuses grew 2.6% annually, beating expectations of 2.4%, and earnings excluding bonuses rose 2.9%, again beating forecasts of 2.8% following August's reading of 2.7%.
The FTSE breached our downtrend parallel channel from above while forming a bearish reversal bar candlestick on the hourly chart. Bearish momentum will continue if the market confirms this candle pattern with prices dropping back in our downtrend channel. Otherwise, a long entry may be interesting on the retest of the upper downtrend line or on an hourly close above 7272.6, in preparation of a market correction.
Support: 7268.4 7196.6
Resistance: 7305.6 7335.9