Quote from Nick on 29th January 2021, 10:47 am

FTSE 100 live outlook prediction analysis for 29th January 2021

The FTSE 100 hit a near one-month low yesterday, having briefly dipped below the closing price of 2020 for the first time this year during intra-day trading. The index closed down 41.22 points at 6,526.15.

Investors have been steadily pulling back from gains made in early January, as higher virus cases and lockdowns weigh on the economy. The UK has reported its biggest rise in vacant shops in over two decades, car output fell to its lowest since 1984 and the proportion of workers on furlough rose to its highest since July.

Game's Up

GameStop plummeted, snapping a dizzying six-day rally and wiping out nearly $11 billion in market value after brokerages choked off demand for the stock by curbing trading on the apps used by the company’s zealous fan base. The stock plunged 44% after Robinhood, Interactive Brokers and others took steps to curtail activity in several high-flying stocks, including GameStop and AMC. It's causing anger with users, has drawn at least two customer lawsuits, and also prompted lawmakers to criticize the decisions. And this just in: Robinhood Markets has drawn down some of its credit lines with banks, according to people with knowledge of the matter.[Bloomberg]

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US & Asia Overnight from Bloomberg

Global stocks retreated Friday amid concerns about a cash squeeze in China and volatile retail-trader speculation in the U.S. The dollar was set for its biggest weekly gain since October.

Losses in Seoul deepened in the afternoon to 3% as South Korea bore the brunt of broad-based losses across Asia. European equity contracts sank and S&P 500 futures lost more than 1% after the U.S. gauge rebounded from its worse loss since October. GameStop Corp. and AMC Entertainment Holdings Inc. surged in post-market trading after brokerage Robinhood Markets Inc. said it will ease some curbs on activity in stocks whipsawed by online chatrooms.

Elsewhere, Treasuries were steady with the yield on 10-year notes around 1.05%. Sentiment in the U.S. was boosted Thursday by earnings from the likes of Mastercard Inc. and Comcast Corp. and a surprise drop in jobless claims. Oil retained a decline as the spread of new Covid-19 variants and tighter lockdown measures weigh on nascent hopes of a demand recovery.

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

Great rally yesterday on both the FTSE and the S&P with the 3715 support holding well. The bulls managed to take it back up to test the 2h resistance at 3830 just at the end of the day, and it's dropped off overnight as "short the rallies" remains the play for the moment. Bears certainly getting stronger and need to break the 3710 level next to get down to 3680 or lower. With the 3730 being defended overnight, and the bulls really need this to hold, we should see a rally back to the resistance levels at 3820, with 3900 above that still. However, 3773 may cap any early bounce as we have the daily pivot here, along with the 30m coral line and the 2 hour Hull moving average.

For the FTSE 100, we have dropped off the Hull moving average last night at 6550 for another 100 point slide overnight though the bulls are currently defending the S1 area at 6448. As per the S&P we may well see an initial climb to the daily pivot at 6501, and we also have the red 30m coral here at 6499 - so a possible area where the bears may reload. Above 6500 then 6555 is the key fib level, then the 200ema on the 30m at 6580, though we have R1 splitting them at 6566.

With the recent weakness on the FTSE the daily chart has gone bearish with the 25ema on the daily for resistance now at 6626, so any climb to this area look to be worth a short. Coincidentally that tallies with R2 for today, though we probably won't get that high today - being month end (profit taking) and a Friday (pays to be cautious).

For the bears they will be looking to break the overnight low at 6430, as that will lead to a test of S2 at 6383 and also the 10 day Raff here. The Raff channels have been holding well this week (the S&P defended its yesterday very well). Below that then 200ema is at 6355 and may get tested soon, along with the bottom of the 20 day Raff channel at 6330.

At least with the recent pullbacks the RSI has dropped off being overbought so there is still the potential for another leg higher in a final push, so far the S&P is only 150 off its recent high.

So, possible rise and dip again today and we "may" get the late end of day pump on the US markets today as its month end and to improve the monthly figures. Reddit fever continues to sweep the markets with the worlds biggest casino living up to its name! Good luck today and have a great weekend.

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