The US tax outcome turbo charged the US markets yesterday with decent rises on both the Dow and S&P, the latter hitting a session high of 2655 and the Dow 24330. The FTSE however, was the polar opposite, dropping off from our 7410/20 resistance area significantly. It was even more bearish than I expected, dropping to 7300 by the evening.
Bitcoin also took a tumble, moving back below 10K. Few of the late comers now holding and looking at a their losses climb. Always the same with these sort of things. Of course today is the start of the new month so we may well see an initial kick up from the 7300 level as the new month money flows in.
Some days it's never easy to pin your colours to the mast and make a prediction, coupled with it being a Friday after a pretty bearish day yesterday that reacted well off my levels, it means today's pickings are currently looking a bit thin on the ground. Excuses out the way, I am thinking that any initial dip down to the 7305 level might well see some buying as the new month money comes in, though how far the bulls can take it, if they can, remains to be seen. I have resistance at the 7343 level but more significant at the 7385 area where we have a fib, R1 and the 200ema on the 30min.
Below the 7305 support area then 7287 is a key fib level, with 7267 below this. A break of that however and there is a very really possibility that we will see the 7100 level, which is the bottom of the 2017 range. We have only had a 500 point range all year as well.
So, not to much to say really, an initial kick up, towards 7385 with any luck but a lot will depend on cable and the US tax bill. We are not following the US up, but we are certainly following them down, as the stumbles the tax bill hit yesterday dragged the FTSE Futures down.