FTSE 100 bucks the trend and remains bid amid jittery Dow and S&P 500 ahead of FOMC
Outlook on FTSE 100, DOW and S&P 500 ahead of FOMC and Non-Farm Payrolls.
FTSE 100 bucks the trend and remains bid
As other key stock indices saw sharp falls ahead of Wednesday’s FOMC meeting, foreign investors continue to pile into the undervalued UK blue chip index with the FTSE 100 barely taking a knock and trying to reach yet another record high close to the 8,200 mark. Further up lies the 8,301 level which is where the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, can be seen.
Support below Tuesday’s 8,120 low sits between the early-to-mid-April highs and last Wednesday’s low at 8,046 to 8,003.
Dow takes a hit ahead of FOMC
The Dow Jones Industrial Average (Wall Street) dropped back to last week’s low and dipped to at 37,735 on Tuesday as the US employment cost index rose more-than-expected while CB's consumer confidence fell below 100 and the House Price Index ended up hotter than anticipated, all of which is pointing to sticky inflation.
A fall through 37,735 would engage the mid-April low at 37,592, below which lies the April low at 37,237.
Minor resistance can now be encountered around Friday’s 38,050 low.
S&P 500 falls out of bed
The US 500’s gradual advance over the past couple of weeks has given way to a sharp sell-off on Tuesday amid pared back US rate cut expectations with the first rate cut now expected to be seen in December. Potential downside targets are the minor psychological 5,000 mark and the 25 April low at 4,990.
Minor resistance sits at the 5,049 mid-February high and at Monday’s 5,088 low.
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