12th September 2017
The market nearly reached both extremes we were looking for yesterday – 7380 for the low and 7440 for the high – and did a nice rise-dip-rise between those levels. With the damage from Hurricane Irma not being as bad as feared and rates likely to remain low for the time being, the S&P rose to a record high and treasuries tumbled in the US. The FTSE 100 managed to remain above 7400 and as mentioned yesterday if the bulls can push through the resistance levels at 7460 area then I am expecting us to reach 7500+ this week.
FTSE 100 Outlook and Prediction
I am expecting a rise and dip today, encountering resistance around the 7465 level where we have a fib level and also R2 for today. The bulls struggled to break the 7440 level yesterday but we still got a bullish Monday. As such we might well see a bear Tuesday today, though I am thinking that the S&P will soon be wanting to visit 2500! We have the BOE on Thursday though I expect that they will leave policy unchanged for the time being, though we have inflation data out at 09:30 today which may show an increase. Expect some moves around this news release. We also have option expiry on Friday.
So, for the bulls, watching 7440 initially, then more key resistance at 7460. If they can push above that then we are likely to see 7500 where we have the top of the two Raff channels.
For support, 7380 still looks key even though we bounced just slightly above this yesterday. Below this then I am watching 7369 and 7350.
For today though I am expecting a rise and dip to play out. Gold has neared the bottom of its Raff channels so may be starting to find support here, and things might start to go defensive soon, which may well see a dip in equities. The UN has increased sanctions against NK, but stopped short of an oil embargo (at the behest of the Chinese I would imagine).
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