27th July 2017
That was a decent bearish reaction off the 7481 shorting level yesterday with a decline down to 7440 after the Fed announcement. Federal Reserve officials said they would begin unwinding their $4.5 trillion balance sheet “relatively soon” and left their benchmark policy rate unchanged as they assess progress toward their inflation goal. US inflation remains below the central bank’s 2 percent target even as near-term risks to the economic outlook appear balanced. In the UK I expect that we will see rates remain lower for the rest of this year.
The dollar sank and Treasuries climbed after the Federal Reserve signaled that inflation remains persistently below its target even as the economy picks up steam. Asian stocks rose to the highest in almost a decade on optimism about corporate earnings.
FTSE 100 Outlook and Prediction
For today I am expecting a bit of a rise and dip day yet again, with a rise towards the resistance level at 7510. We have a few levels of note here today, namely the top of the 2 Bianca channels, and also R2 and a key fib level. If that plays out with a rise to here then a dip back down, we should still be on track for the 7550 area tomorrow. Earnings are still generally coming through positively, and it looks like September will still be the key month for the Fed and policy changes.
Support wise, overnight we have held the 7440 level and I am thinking that we will get an initial dip back to test the 7440 area again. If the bears can break this then the lower support that is worth a long is 7412. Not sure it will move that low this morning though as the positive news and sentiment should follow though with the bulls. Bear it in mind though! [Since writing this at 6am, they did exactly that – spiked it down and brought it back up again!]
So, watching 7440, 7412 and then 7510 and 7550 as the main levels today.
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Morning all. Fully short on ftse and dow.
Ideally i would like to see a dip to somewhere between 300 and 200 before we get back up to 550. Thats tge primary ew count i am running the trades on.
Busted through the 7440 support!
Its still at support right. Although it does look like it will break soon.
However, i am looking at 7430 and 7350 as key support areas.
I had 7410 below that and that one did hold well!
Interestingly i read an article sometime last year avout support zones. It resonated with me so when i say 7430 support it really is +/- 20 points. Its actually worth a read and does make some difference to ones trading style. Look up tradeceity.com on google with support zones as keyword. Certainly has improved my trading style
Daily chart FTSE has made higher lows and higher highs in last 4 weeks, a clear up trend. I am hoping to go long early next week. I have a long position in dax which doesnt feel so good and needs to see some price strength soon or I will bail.
The weekly has made a flat low vs last week and a lower high vs last Friday’s high. Would need to print above there to get bullish. Interesting that the tank in AstraZeneca has wiped about 35 points off this morning so without that we’d be up there testing 7500. Looking to see if 7460 holds this afternoon. We aren’t exactly breaking out despite very positive earnings across the board which shows that expectations are already high. Next bigger move still looks down through August to me
August notorious for plunges, but if FTSE holds this area into the weekend then new monthly money may give it a decisive push north. So I am prepared to go all-in if its holding above 7500 next week. Otherwise I will be on sidelines for a few weeks at least.
Added dow at 70
nasdaq/dow spread ?? big drop
Yeah looks unsustainable. If not today/tomorrow, A decent drop should be in order next week for dow, just feels way overdue. ftse should follow suit
Long dax 12165
Took some profit on ftse shorts. And wee bit on dow shorts
All in Dow short 21790
How ace would it be if my all in dow short was within a few points of the last ATH ..,,,
Wishful thinking!