25th January 2018
Want to discuss things with other traders – please visit the free forum here for todays discussion
The S&P dropped sharply off its 2850 high to 2825, and cable continues to rise as the dollar weakened, now around the 142 area. That certainly didn’t help the FTSE 100 bulls who have failed to break the 7740 level all week and were enable to stop the bears yesterday. Despite the drop in the US the S&P remains pretty strong rebounding to 2835 and still well up for the year so far. It was the FTSE 100 that was the biggest casualty, seeing 7620 out of hours last night, far off the recent 7795 high.
FTSE Outlook and Prediction
Cable continues to rise and thus weighs on the FTSE 100 which is behaving as the weakest of the markets that I watch. The 140 level was resistance but it has pushed through that and actually looks set too push higher still. The FTSE 100 has set up a bearish daily candle after the fall yesterday and now its broken 7690, 7600 is looking very likely. With S1 and the daily coral line at 7598 it is worth a risky long here again, as there is still strength in other indices.
We have the ECB rate announcement later today at 12:45, as well as some US jobs data at 13:30. With regard to the ECB traders will be looking for for further clues on its appetite for rolling back stimulus, and its officials’ thoughts on a strengthening currency.
Membership
Want more detailed analysis for FTSE 100, DAX, Gold and S&P? Then please join our active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram Chat room and webinar group membership for discussion and realtime trade updates