That was a great reaction on the FTSE 100 at 7265 and the short from there worked well, with a run down almost bang to target at 7206, bouncing at 7206.7 instead. Shame really that it just missed the long as would have been nice to get the points on that bounce too. Mustn't be greedy though as they say (boo hiss)! The US continues its recovery after shaking off last weeks bearishness, with it now looking like a massive shake out with the drop on the S&P to 2550, as its now recovered back above 2700.
Cable is back above 140 which might well suppress the FTSE 100 a bit today, and volumes were light in Asia as most markets were shut for Chinese New Year. The ASX200 (Australia) dropped down slightly during Fridays session.
FTSE 100 Outlook and Prediction
For today on the FTSE 100 I am thinking a rise and dip day, with the resistance area at 7288 being tested. There is a fib level at 7298 just above this so I think that we may well see a stutter here if we continue to rise and build on yesterday afternoons bounce.
Support is at 7245 where we have the daily pivot and also the 2 hour chart is showing some support here, so the bulls will be keen to defend this, as a break of this is likely to see a drop down towards 7200.
It's a Friday after a pretty choppy week, and with Asian markets closed volumes might be a bit lighter.
If the bulls do push on with a rise towards the 7350 area then there are stumbling blocks on the daily chart here - between 7350 and 7415 currently, which may well see this bounce end and another drop back down towards 7000. That said, the trend is still up just about with the buy the dip mob out in force this week. The FTSE has lagged slightly, mainly due to pressure from cable though. I am still thinking that we will see a 8000 tested this year though.
So, for today, little bit cautious so as not to give back Wednesday and Thursday's gains, so smaller stakes as its Friday and just the short around the 7286 area is my plan.