The FTSE100 has been trading sideways contained in a narrow range between the 5200 and 5400 price area of the index. The index opened today at 5350.5 but closed the session lower at 5276 as fundamental news from the US weighed heavily across all the major indices. Trading volume was extremely light, not surprising given the summer doldrums, and from a technical perspective today’s narrow spread down candle closed once again below both the 9 and 14 day moving averages. To the downside the 40 day moving average continues to provide an excellent platform of support and provided this key indicator is not breached then we can expect some further sideways price action over the next few days and any break above 5410 to the upside should then signal a breakout and consequent move higher for the FTSE100 index in due course with a solid platform of support then in place. As outlined earlier the US market jobless claims, which came in worse than expected at 500k for the week, coupled with a slump in the Philly Fed which reached its lowest level since July 2009, all conspired to push the FTSE100 lower in today’s trading session. However, the longer term outlook remains firmly bullish provided we see a break and hold abofe 5410 with some clear water below.
For morning trades the FTSE100 is likely to open lower.
Wall Street tumbles spooked by shock jobless claims & a slump in Philly Fed
