London's mid-cap stock index surged to its highest level in more than a year and the pound jumped again as investors piled into domestically-focused stocks on hopes of a Brexit breakthrough. The FTSE 250 closed up 1.34pc at 20,196.97 points as traders bought shares in retailers, landlords, high-street lenders and restaurants amid a relief rally that spilled onto international markets.
FTSE 100 Outlook and Prediction
And the Brexit negotiations rumble on, with the EU now saying that even if a deal is reached we cant leave will January 2020. We shall see! However, it does look like a deal is getting closer which is something. The optimism has helped cable further, which has now passed the 12700 level. For today, the FTSE still has resistance at the 7240 level that we shorted from yesterday, and has found support at 7175 in the short term. That said the bulls have failed to get it back above 7200 so far, and with the daily pivot at 7207 we may well see an initial dip down further, towards the daily support level at 7140. With S2 also at this level we may well see a bounce here, especially if cable were to drop back a bit. Again, keep watching the Brexit news flow and also cable.
The S&P managed to rise to the top of its 20day channel at 3005 yesterday and has dropped back since. There still looks the possibility of a drop down to 2970 on that, possibly lower, but the daily chart is also slowly turning bullish, and shows 2955 as a possible support level, should 2970 break.
If the FTSE bulls were to break above the 7207 level today, then 7240 and 7251 (where we have a key fib) are the next key areas to watch. Above this then the 7280 200ema still looks ripe for a short entry, should we get that high today. Above this then the top of the 20 day Raff channel is at 7368.
Below the 7140 support level then S3 at 7100 and a possible test of the 10 day Raff channel bottom at 7010 is on the cards. That would also be a retest of the recent low.
So for today, another mixed bag expected, but watching the 7140 support level. 7207, 7224, 7250 and 7280 level all look viable resistance as well. Stay nimble!