A stronger pound, the IMF cutting its UK GDP growth forecast and a number of sector-specific warning bells combined to knock investor sentiment yesterday, seeing the FTSE 100 decline sharply and break the 7420 support area for a session low of 7356.
The bulls fought back to get 7400 after the bell, but with the Fed policy decision tomorrow, markets are still a bit jittery. It was good to bank the points on the Dax, and that even managed to rise above the 12200 level, while frustratingly, the S&P long order at 2466 missed by a whisker, though it only rose a little bit. Earnings and Fed are keeping a lid on any rises or falls so far.
FTSE 100 outlook and prediction
It wasn't much of a bull Monday yesterday, so sort of figures that we won't get much of a bear Tuesday either! For today I have decent looking resistance at the 7450 level and if we get that high today it could well be a decent shorting area. The 2 hour chart has resistance at 7446 and 7458. After that decline of over 1% yesterday, the daily channels have widened quite a bit now, though we have the bottom of the 20 day Raff at 7327 for an extreme support level for today. The 10 day Raff is slightly higher at 7362 - so around yesterday's low and a possible bounce area if we get an initial decline.
