S&P 500 & FTSE 100 Outlook: Crucial Support Curbs Further Losses For Now
Equity Analysis and News
FTSE 100 | Riding the Brexit Storm
Rising trendline support situated at 6950 from the post US-election low has curbed the FTSE 100 from further losses as the index rides the Brexit storm. Upside for the FTSE 100 remains limited after last week’s failure to consolidate above 7200, as such, focus is back on support at 6950-7000, which continues to hold. Given the volatility in GBP and the lack of firm direction, the FTSE 100 has also seen relatively choppy price action. With volatility set to continue, it is likely that the FTSE 100 will remain choppy.
FTSE 100 Price Chart: Daily Time Frame (Mar – Nov 2018)
S&P 500 | Eyes Back on 2700
As mentioned last week, the key Fibonacci Retracement at 2811 had saw renewed selling in the S&P 500 with the index now making a return to the 2700 level. Alongside this, cyclical stocks have continued to underperform relative to defensive stocks, consequently risks are increasingly tilted to the downside for the broader index. As it stands however, support at 38.2% Fibo is holding for now, while a close below could see the index make a run on the 2700 handle.
S&P 500 Price Chart: Daily Time Frame (Dec 2017 – Nov 2018)
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.