Trumps speech doesn’t help the bulls | FTSE 100 resistance 7303 7324

1st March 2017

FTSE 100 Support 7270 7268 7251 7241 7225 7192 7180
FTSE 100 Resistance 7281 7300 7317 7324 7343 7425

Good morning. Off we go with the start of another new month off the back of the first address by President Trump to congress last night. The speech offered few new proposals, and Trump made no suggestions on how he would pay for his plans, including a replacement of Obamacare, a tax overhaul offering cuts for the middle class, $1 trillion in infrastructure investment and a large increase in defense spending.

He did not mention Russia, the federal deficit, banks, financial regulations or college education. Wall Street was unimpressed. Futures on the benchmark U.S. S&P 500 Index, which had been up 0.3 percent going into the speech, pared their gains as the president was speaking to 0.2 percent.

We had a fairly tight range on the FTSE yesterday, spending most of the day at 7250, with a quick spurt up to close the month just before the bell which was soon relinquished. Overnight we have risen again to the 7290 area, and just above the 10 day Bianca at 7281.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

The start of the new month and not too much of a bearish reaction from Trump’s speech last night so we should get the usual kick up to start things off as the months new money comes in. We have resistance initially at 7303 then 7324 above that so both these levels might well be worth shorts, though with tight stops. There also wasn’t too much in the speech last night to fuel the bulls, so the Trump rally might be tempered a bit.

Support wise, we have the 7270 area as looking fairly key to start with today, though we are also just at the top of the 10 day Bianca channel at 7281. If this 7270 level holds then we should see the 2 resistance levels mentioned above. However, if it breaks then yesterday’s lows at 7250 are likely, and then 7225 where we have the bottom of the 10 day Bianca as the next support. Below that the recent low at 7192, and a break of that would probably open up a trip to 7100.

I am not feeling overly bullish at the moment and once the new month new money rise (assuming we get one) wears off this morning then we could be on for a dip down towards 7225 or lower – thats what I am thinking at the moment.

16 Comments

  1. FTSE now bullish needs to be below 7270 for weakness..

    Only last friday they were hammering it down to 7200…

  3. I was reading about these new stock market linked savings accounts at the weekend. That wont end in tears, no sir!

  4. Makes you wonder whether these markets would be this high under Hilary Clinton…

    No sign of weakness yet

  5. UK has a strong stock market and weak pound, the Yanks have an even stronger stock market and strong dollar.. just doesnt make sense…

  6. It’s all an illusion. It’s based on the fact that interest rates are very low. When they start moving up, watch what happens. Just a case of when. People buying at the top could lose a lot of money.

  7. So at the time Trumps speech causes HFT and algo driven futures to drop. Yet when the humans are involved its buy buy buy….

  8. I’m thinking that its going to end in tears…Dow surging on unfinanced orange hot air, dragging Europe with it. Longs have turned into a game of chicken.

  9. Dow’s 1000 point gains
    20K-21K: 24 days
    19K-20K: 42 days
    18K-19K: 23 mths
    17K-18K: 25 wks
    16K-17K: 32 wks
    15K-16K: 29 wks
    14K-15K: 6 yrs

  10. I wish I wasn’t stuck with the flu here as I knew it was going to be a buy day like I expected yesterday. Rare opportunity missed. Very sad.

  11. When I started to get interested in the markets and ‘investing’, I recall reading about ignoring news and not depending on fundamentals when making trades. Of course, I had to suffer some pain before the reality of this began to dawn on me.

    Lately, I’ve found myself increasingly disinterested in the fundamentals when I comes to trading. Today, frankly, I couldn’t care less. All I was really interested in was having a go a playing a breakout of the recent daily range, to whichever side presented itself. To my surprise, it came out of the blue today, but the orders were sitting in place. I had only placed about half the trade size I would have done had I hit it live, so I did take a bit of a chance and added to it this morning rather than waiting for a pull back, as it had the feel of another frenzied run.

    I still skim read the fundamentals every day, but I’d encourage everyone to do their best to just let the buyers and sellers do the talking, and not the analysts and journalists.

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