18th September 2017
We have had a bit of a bounce on the futures following a decent session in Asia, and the absence of North Korea doing anything provocative. Following a couple of arrests over the weekend the UK terror threat has been lowered from critical to severe as well. The sell off on Friday certainly gathered some pace but may well have been slightly overdone, especially as the US markets went on to make record highs with the S&P 500 breaking 2500, and holding above it. Now currently at 2506. The Dow is nearly half way to 24000 as well! It was really the BoE that spooked the FTSE 1100 with rate rise talk, and the possibility of a rise in November. That also sent gold down and cable up, which is now nearly at 136. On the FTSE 100 if the bulls can better the 2 hour resistance at XXXX then the bulls will probably come roaring back.
FTSE 100 Outlook and Prediction
If the bulls are quick out the blocks today and can build on this bounce that we are seeing, it will look like 7195 will hold as the low and a rise towards XXXX is viable for today. There is a slight stumbling block of resistance at XXXX that needs to be overcome though on the path to that but if that’s broken then XXXX should be seen. Above that then 7340 is the next area of note and the bulls are back in charge.
Will we get a bull Monday?
If the bears are going to build on their moment in the sun on Friday, then they will need to take the FTSE 100 below 7195, though there is support at 7165 not too far below. If they were able to break this then things remain fairly bleak for the FTSE and we are looking at a drop down to 7100 or lower.
Friday and rate rise rhetoric is last weeks news so the market will be focussed now on what’s coming up. We have record highs on the US markets, gold is dropping down, cable might start to level off at 136, and its still risk on for most indices. The daily chart has resistance XXXX so this bounce might get as far as that if we really start to motor upwards. What happens at that level remains to be seen but for today I am going with a bull Monday play and looking to be long for most of the day.
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