FTSE 100 Support 7083 7080 7064 7052 7029
FTSE 100 Resistance 7119 7127 7137 7144 7153 7164 7218
The FTSE 100 popped a bit higher than the 7155 resistance area yesterday to test the weekly pivot at 7170 before dropping again to the 7100 level. We got a small bounce there, unlike Tuesday which saw a bigger bullish jump, and overnight further weakness has moved the FTSE below 7100. 7080 is the next key support as below this then 7030, with 7000 distinctly possible.
It also starts to look quite bearish below that 7080 level. The dollar continues to rise, which has capped the FTSE bullishness for the moment. 12900 possible on cable I think. As I am sure you know, we had the Parliament vote last night and PM Theresa May is now clear to trigger Article 50 and will be releasing a white paper today on the plan later today. Wednesday¹s vote means the government's Brexit legislation has cleared its first hurdle and May is on course to trigger the process by her March deadline.
Company results continue with Facebook (NASDAQ:FB) beating last night, and then we have the NFP news tomorrow, forecast for a 175k increase.
FTSE 100 Outlook
The bulls still didn't manage to reach 7185 yesterday and in fact its looking more likely that 7030 is going to be seen before too long. The S&P continued its bearishness dropping from the 2289 level. I closed the short at the target at 2277, though it since dropped a bit further to 2268. 2255 looking likely on that.
For the FTSE today there is resistance at the 7125 area where we have a few things, namely the 30min coral, the daily pivot, and the 100 hull MA on the 2 hour. The bulls might have a bit of a job to break this area, but if they do then a test of the 7144 10 day bianca channel is possible.
It looks like its still best to short the rallies for the moment, though the bulls will be keen to get the price above 7100 this morning. However, for the bears they are aiming for a drop down to 7080 where we have the next daily support area. Below this, things start to look a bit ropey with 7000 or below distinctly possible. However, there are a couple of daily supports before that looking at the bianca channels, 7064 for the 10 day and 7029 for the 20 day.
The 2 main levels I am watching today are 7080 for support and 7125ish for resistance.