10th May 2017
The FTSE 100 was surprisingly bullish yesterday, rising to the top of the 10 day Raff channel at 7359 before dropping back from there. Overnight it tested the 7320 level but has climbed back again to the 7340 level. The S&P short we had at 2399 didn’t really do much till the end of the US session and now looks like its struggling to hold above the 2400 level. The drop was due to Donald Trump firing FBI director James Comey after he misled Senate over Hillary Clinton emails. Rumours of a cover up too…. The Vix also ticked up a fraction yesterday, having been making record lows. The Dax short worked well, though probably should have flipped to a long at the 12710 level when we closed! Isn’t hindsight a wonderful thing!
The ASX200 had a pretty positive day on Wednesday, finding support at the key fib at 5816 and rising to the 5890 level.
We have a nearly 14 point dividend on the FTSE 100 today so bear that in mind for later. One that size is likely to bring the divi hunters out so I am expecting some buying to start just before 3pm to push the prices up. I wouldn’t be surprised if we get a bit of a dip and rise pattern today.
FTSE 100 Outlook and Prediction
For today I am expecting a dip and rise day, though how far it might dip down from the 7340 area we are at as I write this remains to be seen. I have gone for what maybe a bit of an optimistic dip down to the fib level at 7290, but it may well only get as far as 7305 where we have S1, or maybe just above.
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