24th May 2017
Bit of a flat day yesterday with only the 12700 Dax resistance level getting any sort of decent reaction. After the attack in Manchester the market all felt quite subdued and today we have the terror threat raised to critical from severe (not much of a surprise though). Overnight the FTSE 100 futures price has weakened, dropping back below 7500 as Asia and Australian markets dropped, after Moody’s cut its rating on China. The 2 hour FTSE 100 chart has gone bearish now with resistance at 7501. I was expecting us to reach the 7535 level yesterday but the bulls didn’t seem to have much strength and stalled at 7520 instead.
Today we have the Federal Reserve due to release minutes from its most recent meeting, offering more clues on the pace of interest-rate increases in the US. We also have ECB Draghi speaking in Madrid at 13:45 today, so likely to see some Dax volatility then. We have a small 1.7 dividend later today as well, a level that probably wont bring the divi hunters out!
FTSE 100 Outlook and Prediction
There are 3 key resistance levels that I am watching today – 7501, 7535 and 7553. All three are probably worth shorting off to see if we actually get some bearishness off a resistance level – something that has been lacking over the past few weeks as its been a struggle to even drop 10 off a key resistance recently.
Support wise, I am watching 7454 as the key support for today (maybe worth a long here) and S3 lower down at 7436.
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