25th July 2017
A stronger pound, the IMF cutting its UK GDP growth forecast and a number of sector-specific warning bells combined to knock investor sentiment yesterday, seeing the FTSE 100 decline sharply and break the 7420 support area for a session low of 7356. The bulls fought back to get 7400 after the bell, but with the Fed policy decision tomorrow, markets are still a bit jittery. Was good to bank the points on the Dax, and that even managed to rise above the 12200 level, while frustratingly, the S&P long order at 2466 missed by a whisker, though it only rose a little bit. Earnings and Fed keeping a lid on any rises or falls so far.
Asian equities were mixed ahead of the U.S. Federal Reserve’s policy decision and as investors sifted through earnings from companies including Alphabet Inc. Oil rose while the dollar resumed declines.
FTSE 100 Outlook and Prediction
Wasn’t much of a bull Monday yesterday, so sort of figures that we wont get much of a bear Tuesday either! For today I have decent looking resistance at the XXXX level and if we get that high today it could well be a decent shorting area. The 2 hour chart has resistance at XXXX. After that decline of over 1% yesterday the daily channels have widened quite a bit now, though we have the bottom of the 20 day Raff at 7327 for an extreme support level for today. The 10 day Raff is slightly higher at 7362 – so around yesterdays low and a possible bounce area if we get an initial decline.
If the bulls were to break above the XXXX level then we should be on for further rises towards the XXXX level, though I think that may well be later in the week.
The bulls will be keen to get the 2 hour chart positive but might have a bit of a job breaking the XXXX level.
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