Quote from Nick on 8th November 2021, 11:16 am

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

Following the closing bell on Friday, London's FTSE 100 finished 0.3pc higher at 7,303.96.  That's a weekly gain of 0.97pc for the week and keeps the blue chip index above the 7,300 mark.  The mid-cap FTSE 250 index also finished higher, rising 0.5pc to 23,596.79.

US job growth rebounded more quickly than expected last month, in a sign the economic recovery is picking up pace. Employers added 531,000 jobs in October after a significant upward revision to the previous two months, Labor Department figures showed. The unemployment rate fell to 4.6pc, while the labor force participation rate was unchanged.

The jobs gains, which were led by the leisure and hospitality industries, paint a more positive picture of the labour market than previously thought, as a decline in Covid cases helped employers fill vacancies.

Stocks in Asia were steady Monday as investors keep watch on how price pressures impact monetary policy and the pace of economic recovery. Treasury yields rose. Equities slipped in Japan and Hong Kong, while China edged higher. U.S. futures dipped after all major U.S. equity benchmarks climbed to records Friday, with the S&P 500 posting its fifth consecutive weekly rally. That was after a larger-than-forecast and broad-based gain in U.S. payrolls that also showed a jump in average hourly earnings.

Australian bonds rallied after the U.S. 10-year Treasury yield tumbled below 1.5% on Friday. Markets will closely watch a read on U.S. consumer prices this week. The dollar rose.

Xi Jinping will huddle with the Communist Party this week as he lays the groundwork to defy precedent and secure a third five-year term in power at next year's party congress — and then potentially rule China for life. From Monday to Thursday, about 400 senior officials, mainly men, will meet behind closed doors in Beijing for the annual policy plenum meeting. "Common prosperity" policies are likely to be affirmed. Here’s what’s happened since Xi began his crackdown on the tech industry a year ago. In other China news, the country posted a record $84.54 billion trade surplus in October as exports surged despite global supply chain disruptions.

Elon Musk's Twitter followers recommended he sell 10% of his Tesla shares, worth about $21 billion. Almost 58% of 3.5 million voters backed the move in a poll that he launched Saturday. The world's richest person said he'd "abide by the results" regardless of the outcome, citing the debate over the wealthy hoarding unrealized gains to avoid paying taxes. Tesla may fall when Wall Street wakes up: a cryptocurrency Tesla token on FTX recently fetched $1,138.95 — 6.8% lower than Friday's close.

The trade deal between the U.K. and the European Union will be thrown into question if Britain revokes its commitments to the Northern Ireland protocol, the Irish foreign minister warned. The two sides are embroiled in a stand off over the protocol, an agreement that allowed the U.K. to leave the bloc’s single market without creating a hard border on the island of Ireland. In happier free trade talks, Australia and the U.K. are both confident their agreement will be finalized by year end.

FTSE 100 live outlook prediction analysis for 8th November 2021

We had a strong showing on Friday and the bulls managed to crack the 7300 level (just about!) while the S&P500 managed to get to its longer term resistance level at the 4720 area. We have since had a small drop back from this area and we may well see one more try for that area early this week before some seasonality weakness kicks in towards the end of the week.

The S&P500 bulls will be keen to defend the 2h support line at 4666 and the 10 day Raff channel bottom at 4660. That also ties in with the S2 level at 4652. If they can defend any drop to here then we should see a decent bounce back to the 4700 are again, otherwise a test of S3 at 4629 looks likely. A push past the 4720 level looks a bit of a big ask just at the moment though should they manage to do so then the top of the 10 day Raff channel is at 4745 and likely to be seen. Seems a big ask this week though, but worth shorting if we get that high.

For the FTSE 100, the charts remain bullish really, with the bulls likely wanting to push up towards the 7350 area where we have a couple of resistance levels and then the daily level at 7365 above that, Should we get that high then we could see the bears have a go here, and it will be worth keeping a close eye on this area. The daily channels are still heading up though I am expecting a bit of a dip down to reset the slightly overbought conditions before the year end push starts and we start talking about/targeting 7500 again for the year end level.

Initial resistance is at Fridays high dn the daily level at the 7326 level, with 7341 R1 and 7347 key fib above that. 7365 as mentioned but if we were to get a storming bull Monday today and push past that then the bulls will be also aiming to break R2 at 7374. Not sure we will push that high as the S&P key resistance at 4720 is in play though.

The initial support is at 7280 where we have the 200ema on the 30m chart, and also just below the Hull MA on the 2h. However, it's not the first test of that MA, so we could see a bit lower to test the 2h coral at 7277 and possibly S1 at 7267. Key fib support is just below that at the 7249 level so keep an eye out for this if the 7267 level breaks.

So, expecting a bull Monday, bear Tuesday pattern for early this week and then the seasonal weakness to kick in for the second half of the week. Good luck today.