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.
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!
So, watching 7440, 7412 and then 7510 and 7550 as the main levels today.
