Bears charge as SPX sells off | 7798 7815 7840 resistance | Fed overtake risk | 7756 7730 7708 support

Bears charge as SPX sells off | 7798 7815 7840 resistance | Fed overtake risk | 7756 7730 7708 support

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 20th January 2023

Asian stocks shook off worries from rising interest rates and economic risks to advance on Friday before Lunar New Year holidays interrupt trading across many markets in the region next week. Hong Kong equities led gains and shares in Japan reversed small initial losses. Futures for US stocks rose after the selloff on Wall Street showed some signs of easing Thursday, when the S&P 500 fell for a third day.

Felt like that dip was a bit overdone across the board yesterday and sure enough it has all bounced back. Buy the dip continues for the moment, though there is still that seasonality to bear in mind which sees the declines start mid January. We are not back at the 7850 recent high just yet so if we start to set some lower highs then we may well see a bit more bear next week. The test will be for the bulls to break above the 2h resistance at the 7840 level.

The S&P500 has regained 3900, but still well below the 4000 level which its failed to hang onto.

Initially today we may get a bit of a rise continuing with the 7800 level the first line in the sand with the 200ema here. Just above this around the 7810 level we have the R1 and key fib, so we could see a drop off from here down to the 7760 level where we have the now green 30m coral (showing an uptrend).

Above 7810 then the bulls will be keen to push on for a strong end to the week, with the 7840 level the main level to break. Above that it will all look more positive for the bulls again, with the daily resistance now at 7870. Can they push that high today?!

Support wise, below the 7760 area the 7715 is the key level with the 20d Raff here, and daily support, with 7695 below that. I dont think we will get that low as the overnight strength may roll through into today.

The Raff channels continue to head upwards though, and with 7740 (10 day) and 7716 (20 day) in play, supports should hold (overshoots not withstanding..)

We have option expiry this morning at 10:10 so expect some chop then as the futures contracts roll over. We may well see a spike upwards then.

It would be positive for the bulls for the S&P to hold above 3900 today as well, ahead of the weekend. Again we have a green 30m coral on this with support at 3894 so a hold of any dip down to that would be good. 3930 is the Hull resistance level that the bulls need to push past really.

Good luck today and have a great weekend.

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