The big news on Friday was that Donald Trump's healthcare bill was pulled before it looked like it was going to fail to pass. This in turn has led to the bears taking control of the indices, as it would indicate that Trump will struggle to do a lot of the things he said he would do, which were things that fuelled the "Trump Rally". With the FTSE having topped out at the 7445 level, its now back below 7300 as I write this, and we might, for the first time in a while struggle to deliver the bull Monday, bear Tuesday pattern this week.
FTSE 100 Outlook and Prediction
We have a gap from Friday's close at the 7333 level so might see an early charge from the bulls towards this level. There are some pretty strong daily supports around the 7280 area where we are as I am writing this so an early morning initial rise could well be on the cards. The ASX200 (Australia) followed a similar pattern. This afternoon we might see some more weakness as the US digests properly the news of the bill being pulled and how likely Trump is going to get his various pledges delivered. Repealing Obamacare had been a fairly key one and this first test hasn't gone too well.
So, if 7270-80 is decent support, then a breach of this could get things quite bearish for the end of March. We do have a fib level at 7275 and well as S3 at 7268, so I will only get more bearish if we dip below this.
On the flip side, if the bulls do go for a bull Monday charge, then a break of 7346 will keep the uptrend in tact and those higher levels culminating in 7520 are still in play.
For today, therefore, I am watching the 7275 level for support, and then 7343 for resistance. I am also expecting possible resistance level to play out at 7305 which might temper any early rise.