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Dip and rise again | Watching for supports at 7110 and 7070 | 7145 7187 resistance

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

The triple lock has been scrapped for next year, meaning the Government can avoid an 8pc rise to pensions in April to save £4bn. The measure, which raises pensions in line with the greater of CPI, wage increases or 2.5pc, will not be in place for 2022 or 2023.

It followed the Government increasing National Insurance contributions by 1.25pc, as well as a dividend take hike of the same value, as it seeks to fund social care reform.

Employers will have to pay an additional 1.25pc in national insurance contributions from April 2022 as part of a string of reforms unveiled today.

FTSE 100 live outlook prediction analysis for 8th September 2021

September selling kicked in a bit yesterday as once again the bulls failed to push up towards the 7200 level. However the daily support level of 7111 was tested and held overnight and if we see that early this morning we could see a reaction here again. Below this the S2 level at 7072 and an overshoot of the bottom of the 10 day Raff channel at 7100 may well see a bounce.

The bulls will be looking to break above the 7143 level initially where we have the daily pivot and 7152 for the 200ema. However, with the drop yesterday the 2 hour chart is now bearish with both the Hull moving average and the coral at 7165 for resistance today. The bulls may struggle to break above that level initially especially as we have R1 at 7171 as well.

Tying in with a possible drop and rise scenario today is the S&P looking like a similar pattern will play out and a break of yesterdays low at 4512 will likely see 4494. Below this, and still looking possible, is a test of the 4475 S3 level though this area could well see a decent bounce. Not sure we will get that low today though.

If the FTSE100 bulls can break above the 7170 level today then we should see a push towards R2 at 7214.  As we are at the bottom of the 10 day Raff channel the bulls will certainly be keen to defend any drops today and I am thinking that the 7072 level should see a decent bounce. If not though then S3 at 7028 would likely get tested.

The 20 day Raff channel has widened considerably and the bottom of that is down at 6967 currently. Any major upsets and we could well see that channel come into play as we progress through September.

So, favouring a dip and rise again today, and watching the key supports at 7110 and 7070 today. The main resistance level is 7140, 7165 and then 7214. Good luck today.

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Asian Session

Asian stocks were steady Wednesday as a rally in Japan moderated and traders evaluated the risk of a slower recovery from the pandemic due to the delta virus variant.

Shares fluctuated in China, slid in Hong Kong and climbed modestly in Japan, where SoftBank Group Corp. extended gains as investors bet on the possibility of a buyback announcement. U.S. futures were little changed after the S&P 500 fell and the Nasdaq 100 climbed to a record as growth concerns sent investors toward more defensive areas of the market.

In China, an investor exodus from China Evergrande Group deepened after its bond and stock ratings were cut further. The shares slid below the 2009 initial public offering price. Warnings are growing that Beijing’s campaign to cool its property market -- a vital economic sector -- may go too far.
A selloff across bond markets has intensified in part due to a flood of debt sales. The 10-year U.S. Treasury yield remained around 1.36%. Australian and New Zealand yields climbed too. The dollar held a rally. [Bloomberg]

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