14th September 2017
Another day, another trio of record closes for the Dow Jones, S&P 500, and Nasdaq indexes. The S&P 500’s rally is now the third-strongest in history, with the benchmark gauge finishing just shy of 2,500. The bulls failed to reach the 7410 level though just below this area is still looking like resistance on the 2 hour chart, with the top of the 10 day Bianca at 7423.
North Korea threatened to use a nuclear weapon against Japan, further raising tensions.
At 12:00 we have the rate decision in the UK. I don’t expect them to rise till early 2018 though.
FTSE 100 Outlook and Prediction
The main focus today will be the rate news and if the US can push higher again later to actually test the 2500 level on the S&P. It’s so close you would think that the bulls will want to grab those headlines. The FTSE is in a tight range with support at the 7380 level initially yet resistance at 7401 so it will be interesting to see what ti does this morning. The ASX200 had a fairly flat day and we may well see the same ahead of option expiry tomorrow.
The 2 hour chart is still weakly bearish with the resistance around the 7400 level, though as per earlier this week, above this 7440 is resistance. If the bulls were able to break this then 7500 is still on the cards so its worth going long on a break of 7440.
If the bulls can defend the 7380 level then we might well have decent close to the week and break the 7440, though if the bears break 7380 we are looking at a dip down towards 7330 again. We have the bottom of the Bianca channels here, and also a key fib level slightly lower at 7318.
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