17th May 2017
Not very much of a bear Tuesday! Each resistance level – 7474 and 7504 – got a tiny reaction of 5 to 10 points to the downside and then the bulls powered through. The only market that seemed to behave normally was the S&P – dropping off R1 at 2404 and declining steadily as growing concerns weighed on risk appetite in the US over the turmoil surrounding Trump. Gold rose again steadily, now at 1243, and the indicators are there for it to be a bit risk off on indices so its a bit strange how the FTSE 100 keeps pushing on. After rising to 7530 I expected the top of the 10 day Raff channel to be hit at 7550 but it decides to stall below that. This rise has unfortunately hurt a lot of bears, and lots of bulls have also missed out as the price never drops back to a support level. Certainly quite strange and it will be pretty ironic if we have the first red daily candle and a negative day on the day that we have a 20 point dividend (don’t forget this later as its likely to see some buying start around 3pm).
FTSE 100 Outlook and Prediction
It will be quite amusing in a funny sort of way if today sees the first red daily candle when we have a 20 point divi and everyone is expecting it to be bullish. Has the FTSE 100 annihilated enough shorters now with that rise to 7530? Maybe not as 87% of IG clients are still short so it might want to stop out a few more yet.
The US futures prices have declined as the turmoil surrounding President Trump continues. The latest is that Trump ‘asked Comey to drop Flynn investigation’ which has weighed on S&P and US futures. As mentioned above gold continues to rise as well so there are still signs that markets should be weaker.
There is resistance at 7550 that looks good for short entry (possibly, maybe, will it, wont it) and 7515 just below that. Support wise, 7450 looks like a level where the divi hunters might well start showing up – this is the last of the larger dividends for a while so it more than likely to see a kick up, usually starting about 3pm these days.
Want more detailed analysis? Then please join our active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- WhatsApp and webinars group membership for discussion and realtime trade updates