CAC40: Blueprints 9.

After a beautiful diamond, which has triggered a bearish market for about two weeks, the French index bounced back ahead of the FOMC meeting's disclosure, where a liftoff is probably going to occur. From a historic point of view a hike in interest rates have always led to a correction. Nonetheless, the market was in a bearish movement that was close to sending it back to August's low.

Another thing can make things worse for the bulls: another bearish market on Oil, which has reached a multi year low, three sessions ago, would worsen the situation, the French benchmark being sensitive to Oil prices, since Oil & related companies represent 10% of the benchmark's weight, through Total S.A.(CHXEUR:FPP) and Technip S.A.(CHXEUR:TECP). Another slide in the Oil market will inflict more damage to the French benchmark, should a bearish market be the result of today's FOMC.

Oil and the benchmark are closely related. As a fall in Oil prices can render any bearish market worse for the benchmark, as well as an increase in Oil prices can help sustain any bullish movement.

Re-entering the bearish market, as a result of the FOMC meeting, will send the French benchmark south, seeking 4387.72, with 4501.44 as a primary objective.

A breakout of 4673.96, will send it seeking 4783.38, with 4727.63 as a primary objective.

The daily Pivot Point is around 4587.04. The daily support levels are around 4547.32 and 4480.2. The daily resistance levels are around 4654.12 and 4693.84.