After several weeks of steady growth, the mid-cap FTSE 250 hit a 15-month high today while the pound retreated against the dollar and euro.
On the FTSE 250, which hit a 15-month high as spirits remained upbeat for another session, foodie firm Greencore (LON:GNC) felt the pain. The only bigger faller on the FTSE 250 was real estate firm Shaftesbury LON:SHB), which has been forced to write down the value of its portfolio amid a downturn on the high street.
Overall, the midcap index closed up 0.8pc, or 161.8 points at 20,864.9, while the blue chip FTSE 100 edged up 6.8 points, or 0.1pc, to end at 7,403.1.
FTSE 100 Outlook
The bulls managed to hold onto the capture of 7400 yesterday and the bears did only manage to get it down as far as the pivot in the end at 7381. Not much selling appetite yesterday! Initially today we have the 7431 level as resistance as we have R1 here and it is also the recent high from earlier in November. As such its worth keeping an eye on this level as we may well see some bears appear here first thing after the run from 7200.
If the bulls were to break above 7432 then we should see a rise to the fib level and R2 at the 7458 area, We are also then getting near to the top of the Raff channels at the 7480 level for today. Can they push that high as the news flow continues to look positive on the US/China trade deal news front? Sometimes you get the buy the rumour sell the news pattern play out with these things and the US markets will sell off once the deal is signed. That said, its Thanksgiving week, usually bullish, and the US markets are closed tomorrow.
We have an 8 point dividend today as well. Though small it may well help the bulls.
Support for today is showing at the 7405 level to start with as we have the daily pivot here, and also the Hull moving average on the 2 hour. The bulls will be keen to defend this level, but should it break then I am looking at a drop down to test the 2 hour coral line at 7350. Below this we will be looking at the daily EMA at 7325 for support and a possible swing long area here. For the moment the bulls are still in charge and the S&P continues to push on, with the Raff channels firmly heading up.
Watching 7431 closely first thing to see if we get the reaction here and will try a small short off this level. If it starts to drop with any conviction then I will probably add to it. Otherwise, I am looking at the 7458 level as stronger resistance. If the pound continues to drop, and cable breaking below 129 yesterday may well see more downside on that, then that will also help to push the FTSE higher. Election fever gathers pace and the shrinking lead for Boris is weighing on that. The markets continue to look bullish, though that was a decent bounce on gold yesterday. Good luck for today.