Good morning. After Mondays sell off Tuesday was pretty flat as things consolidated and we await some more news and NFP on Friday. We have an 11.7 dividend today so bear that in mind if you are short at the close, and 11 points is likely to see a bit of a divi rise this afternoon as the buyers come in for it. Despite the FTSE hovering around 7300 for most of the day, when the US came online we started to see the bulls appear, which brought the FTSE 100 up to the 7335 resistance level. Overnight it has managed to push up to 7350 but has now dropped back. The SP rise stalled at our resistance level at 2359 and dropped a bit, taking profit off at 2355 being the right thing to do as the bulls fought back. The ASX200 had a dip and rise session today, so the FTSE100 may well follow suit, and we have some fairly key resistance at 7375 today.
FTSE 100 Outlook and Prediction
For today I am watching the 7318 level for support and 7375 for resistance. We might well follow a similar pattern to the ASX200 with a dip and rise day, especially as we have the 11.7 point dividend later.
If the bulls manage to break 7378 then we should see 7400, and possibly 7420 where we have the top of the 10 day Raff channel - so I expect a few stutters here if we were to get that high.
On the news front we have, at 6pm, the Fed minutes which the market will be looking at for further rate rise clues. We also have, at 2pm, ISM Services data out in the US. If that is weak, as per manufacturing data, then that will likely bring the bears back out.
Speaking of bears, they will need to break 7318 then S1 at 7308. After that, Monday's low at 7260 will need to be broken to go any lower.