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5th March 2019

The bulls have defended the 7100 level overnight though and we are sat at 7134 on the futures as I write this. We have another large dividend this week, 18.4, so again that may well help underpin the bulls today and tomorrow.

Monday Review

European markets have climbed to a fresh five-month high after the global rally was given a shot in the arm by hopes that the US and China are closing in on a trade deal. The world’s two largest economies are reportedly nearing a deal that will remove most of the US tariffs impacting Chinese goods worth hundreds of billions of dollars. An agreement hinges on Beijing following through on a range of promises, including increasing US imports and revamping intellectual property rights, Bloomberg claimed.

The FTSE 100 gained 0.4pc while European stocks extended their rally to hit a five-month high. After briefly hitting their highest level since October, US markets pulled back, led by sinking tech stocks.

US Monthly construction spending growth slid 0.6pc in December, pulling the S&P 500 back to a 0.2pc advance.

FTSE 100 Trading Signals, Forecast and Prediction

Could be another interesting one today! Overnight the bulls have fought back from the lows, on both the FTSE 100 and the S&P500. The latter has now set up 2 hour resistance at 2800 so the bulls will need to break that level to push on, otherwise a drop to 2740 looks likely. On the FTSE, the 2 hour chart has remained positive, and is showing support at the 7100 level, and indeed it was this support that held last night after the drop down from 7167. If we get a test of this today then I am expecting it to hold again for a push towards the 7171/7180 resistance level. We also have the top of the 10 day Raff channel at 7163, and having dropped off the top of this channel yesterday a couple of further tests will likely see a break through and a push towards 7300.

Support wise, we may well see an initial dip down though we are currently sitting bang on yesterdays closing price. As mentioned above we have another large dividend this week (18 points) so that will help to underpin the bulls for the moment. Support wise, I am looking at the 7105 area to start with, though should the bears break below this then a drip down towards 7040 is looking pretty likely. I expect the bulls will defend this level, at least initially, as otherwise we are looking at 6968 – a level that should in theory see a decent bounce and a rise back above 7000. Brexit day looms closer so we are likely to get a bit choppier towards the end of the month and I am sure the powers that be will want the FTSE as high as possible prior to the deadline so if it does drop back its from a higher point.

Looking ahead, news item highlights include French, German, EZ (Final) & US Composite and Services PMI, EZ Retail Sales, US ISM Non-Manufacturing PMI, Fed’s Rosengren, Kashkari, Barkin, BoE’s Carney, RBA’s Lowe.

Will be interesting to hear from Carney later as he testifies to the House of Lords at 15:35.

So, for today looking at a similar range to yesterday with 7100 support and 7180 resistance.

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