19th September 2018
Tariffs, what tariffs? After the overnight drop on Monday the market didn’t really give much thought to them and spent the day being bullish, since the low on Monday night at 7230. It’s got to the stage where the bulls are back trying to break 7320 which stubbornly refuses to relent. Overnight the Asian markets have climbed, while the S&P is back above 2900. The S&P registered its biggest intraday gain in three weeks. Technology stocks, which got hammered in Monday’s session, led the equity benchmark higher. Still looking for 7350/7390 on the FTSE 100 if they are able to break 7320, can they today?
China announced it will take retaliatory tariff action against $60 billion of U.S. goods, sharply escalating their trade conflict as the Trump administration considers imposing duties on almost all Chinese imports. China’s retaliatory tariffs, on items ranging from meat to wheat to textiles, will take effect on Sept. 24, China’s Ministry of Finance said in a statement.
FTSE 100 Trading Signals, Forecast and Prediction
For today I am thinking that we may well finally break 7320 and get a rise towards the 7350 level. If the bulls are able to break this then the 7395 is still resistance and may well see a bit of a reaction later today/tomorrow. We have a tiny dividend of 0.3 today. It is also option expiry this week which is why it is a bit choppy. If we rise towards expiry on Friday then we may well then see some further declines after that, but in the short term its looking like the FTSE 100 is going to rise.
7320 is of course still resistance but the more it is tested then the more likely it will break, and it has been tested a lot!
So, there is a case for a bit more bull for the short term as we head towards expiry on Friday but am watching the resistance levels closely.
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