Quote from Nick on 30th October 2018, 11:03 am

30th October 2018

That was a nice rise yesterday from the 6930 support area, with the bulls eventually reaching the giddy heights of 7085, before Trump spoke about more tariffs and boom, down it all went. The FTSE 100 futures dropped to 6915, dipping below the 2 hour support at 6940, and the S&P hit a low of 2604. However, things then swiftly reversed and the FTSE is now back above 7000, and the S&P at 2660, as Asian markets turned higher during Tuesday.

Yesterday traders in London piled back into oversold stocks after last week’s wobble amid fears that corporate earnings had reached their peak. Market sentiment was restored by China’s boost for its economy, the election of a market-friendly candidate in Brazil, an improved outlook for Italian government debt and bumper earnings from HSBC.

The U.S. is preparing to announce by early December tariffs on all remaining Chinese imports if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war, three people familiar with the matter told Bloomberg. An early-December announcement of a new product list would mean the effective date — after a 60-day public comment period — may coincide with China’s Lunar New Year holiday in early February. The list would apply to the imports from the Asian nation that aren’t already covered by previous rounds of tariffs — which may be $257 billion using last year’s import figures

China is considering a tax cut to revive its flagging automotive market, according to people familiar with the matter, lending support to a key industry that’s been damaged by the ongoing trade war with the U.S.

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FTSE 100 Trading Signals, Forecast and Prediction

I am looking at two main areas for today, and also mindful of it being a bear Tuesday after we had the bull Monday yesterday (during the market hours). The levels are support at the 6950 area and the resistance level still at 7075.

If the bulls are able to push above the 7075 level with conviction then we start getting near some daily resistance levels at the 7115 to 7130 area, and might see a bit of a pull back from here, before a leg higher towards 7215. The ball is really in the bulls half and it remains to be seen if they can run with it, but getting back above 7000 this morning after last nights wobble does bode well though.

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