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S&P 500 and FTSE 100 Forecast For The Week Ahead

S&P 500 and FTSE 100 Forecast For The Week Ahead

Justin McQueen, Strategist

FTSE 100, DAX Analysis and News

  • FTSE 100 | Upside Momentum Remains as FTSE Eyes 7200
  • S&P 500 | Trend is Your Friend

FTSE 100 | Upside Momentum Remains as FTSE Eyes 7200

The FTSE 100 notches another modest gain for the week (+0.4%) and once again the index is eyeing a test of the psychological 7200 with the recent YTD highs only slightly above at 7220. On the whole trading conditions have been rather quiet, and when markets have gotten slightly more interesting, weak data has pushed equities even higher given the current bad news = good news (for stocks) regime. Momentum signals continue to point towards further upside and the RSI is some distance away from signalling overbought, the path of least resistance is higher. While on the downside, pullbacks have been limited to the 50DMA (7095) and the rising trendline from the October 2020 lows.

FTSE 100 Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 32% -21% 11%
Weekly 51% -33% 11%
What does it mean for price action?
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FTSE 100 Price Chart: Daily Time Frame

FTSE 100 Chart

Source: Refinitiv

S&P 500 | Trend is Your Friend

The trend is your friend, a common phrase in financial jargon, but also rings very true for how the S&P 500 has traded in the last few months. Now while questions are being raised as to whether this run can continue with the index already up over 20% this year there are little in the way of narratives shaping up to present a material concern for the index. Taking a look at the technicals, the RSI is showing a slight bearish divergence but with the indicator yet to hit overbought levels, I am doubtful that this will be set up a cause for alarm bells. I suspect the upcoming weak will be another grind higher for the index. On the downside, weakness has been limited to the 50DMA as market participants maintain a buy the dip approach.

US 500 Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 9% -4% 3%
Weekly 25% -14% 6%
What does it mean for price action?
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S&P 500 Price Chart: Daily Time Frame

S&P 500 Chart

Source: Refinitiv

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