3rd January 2018
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Lacklustre day for the FTSE 100 yesterday which had a slow decline from the 7690 level to test a low of 7625 before a low key bounce back to 7650. Meanwhile the Dax screamed down 200 points, then climbed back 170, while the S&P shook off the early bearish start and ended the day at a new record high. The FTSE 100 was dragged down by miners and also a stronger pound, while the S&P rise was mostly due to a rise in tech shares. The strong start to 2018 by the US markets has carried through into Wednesday’s Asian session, while the FTSE 100 futures remain weighed down. At 7pm this evening we have the FOMC minutes, which may give some clues on when the next US rate hike will be.
FTSE Outlook and Prediction
After the drop on the FTSE 100 yesterday the 2 hour chart has gone bearish and has resistance at the 7673 level. With the bulls failing to break the 7705 level so far, this 7673 level looks like its worth a short fro a run down towards the bottom of the Raff channels at 7618 and 7606, with a possible test of the 25ema on the daily chart at 7530 still on the cards.
Gold has dropped off the top of the Raff channels overnight at the 1320 level, so today currently has the first red daily candle on gold since 12th December! Been a decent rise on gold from the lows, and with a bit of bearish media around, is seeing a bit of its safe haven status return. US, NK and Iranian tensions rumble quietly in the distance and something to keep an eye on.
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