Inflation came in at 2.6% for June, slightly bettering the 2.9% that was forecast. The market (suspiciously!) started rising about half an hour before the scheduled news from the 7357 level where we had our fib line for support.
After printing that low, the FTSE 100 stayed relatively upbeat, though the short managed a few points from 7404 to 7385. Overnight, strength has returned with Asia advancing back towards its record highs. We have the ECB meeting tomorrow with the general consensus being they will keep everything as is. Meanwhile, the chance of the Fed raising rates before year end has dropped to 40%.
The 2 hour chart is now looking bullish, with support as 7408 to start with this morning. Still running the 1241 gold short as it hasn't hit the 1245 stop as yet. Might see a decline today on gold.
FTSE 100 outlook and prediction
For today I am expecting us to remain bullish and build on the overnight strength. We may well get an initial dip down but with support at 7410 and 7398 I am thinking that this area will hold for a push towards the top of the 10 day Bianca at 7453. Above this then the daily Raffs are showing resistance 7474 and 7500 - levels that are not out of the question this week. As mentioned above the 2 hour chart has gone bullish with support at the 7410, gold has dropped off its high yesterday at 1244 (and will hopefully go further to get this 1241 short into profit).
The 30min chart is bullish to start with, mainly helped by Eastern markets rising. The ASX 200 had a decent rise today as well. The Dax was a bit spooked yesterday, dropping sharply but largely remained self contained as most other markets remained resilient to that sell off.
