That was a pretty lacklustre Monday in both the UK and US sessions and not too much of a bull Monday. However, the Dow eked out a small gain - just enough to lift the 30 stocks to their ninth record high in a row and tenth straight gain overall.. Traders awaited to see if the dividend buyers brought things up, while at the same time awaiting more clues on global economies and US rate decisions, with inflation data due Friday. In the UK we have factory output data for June on Thursday, and again, will start to give a flavour of the state of the economy and a clue for rates. The dividend tomorrow of nearly 41 points will keep the FTSE support for the next two sessions.
FTSE 100 outlook and prediction
We had a tiny effort at a bull Monday yesterday, however we might well see a bit of bear Tuesday today if we mimic what the ASX 200 did today. I have initial resistance at the 7534 area so if we get an initial spurt up to here then a dip down looks distinctly possible. Might even dip down to the 7480 area. The mainstream support and resistance levels today are pretty bunched with S3 at 7494 so not far below where we are as I write this.
The dividend is still going to support things for the moment, however some of the members and I were talking yesterday and as everyone expects a rise for such a large dividend, don't be surprised if it doesn't happen. However, the dividend is applied tomorrow, but might well support things today.
With yesterday's lacklustre showing, the 2 hour FTSE 100 chart has gone weakly bearish with resistance at 7529 also. However, I am still thinking today and tomorrow buying the dips is a good move.
So, watching 7534 and 7575 as resistance and 7480 as support for today.
