15th September 2017
Well the BoE put the cat amongst the pigeons without really actually doing anything, as the FTSE 100 tumbled to 7300 after news that they were leaving everything unchanged. They voted 7-2 again to leave rates as they are, but did elude to a rate rise in November which is probably what spooked the market. With cable rising to the 134 level the FTSE had a lot of downward pressure and finally dipped below the 7300 support we have had for a while.
Overnight we have news that North Korea has fired another missile over Japan, much to their ire I expect. The market has largely shrugged it off so far.
FTSE 100 Outlook and Prediction
For today I have a cluster of supports around the 7250 level and it will be interesting to see if this area holds on any dip. The FTSE 100 is the only market really falling at the moment (currency led most likely) as the SP is still at 2494, the Dax back above 12500 and yet the FTSE looks weak. It’s either leading the pack or just having a wobble which may well be short lived. If 7250 breaks then I expect we are on the way to XXXX though, and the wobble won’t be short lived!
If the bears can break 7250 though, then XXXX are in view and also likely. The FTSE is pretty spooked at the moment, but with us at the bottom of the Raffs we might well see some support. September is usually a weak month anyway so it is following the usual course of events.
We also have option expiry today so expect some chop at 10:10 this morning, till 10:20. The market will spike a bit and it is possible to short or long the spike to gain a few points if you are feeling nimble.
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