The FTSE 100 is trying to stabilize above 6250 which is the current major trend-defining-level. In the case that we trade above this level, the index will still be in a position to resume its bullish posture.
We keep an eye on Tuesday’s high of 6330 to indicate when the short-term trend has turned bullish. In the case the FTSE 100 is to break 6330, the index may reach 6400, and then the upper end of its 6250 – 6487 range.
If the price slides below 6250, we would expect it to reach 6181 and then 6108. These levels are the 50% and 61.8% Fibonacci levels of the 6874 – 6587 rally.
Jobless Claims on Tap
A Bloomberg News Survey forecasts U.S. Jobless claims to print 270k from last week’s 276k. A lower than expected outcome indicates that the U.S. labor market is doing better than expected and may boost the FTSE 100. Data on tap this morning is Euro-Zone Industrial production and it’s expected to print 1.3% YoY. As the outcome may influence the DAX 30 in a positive way, if in the case the outcome is better than expected, it may also impact the FTSE 100 given its correlation to the DAX.
The DAX 30 itself is bullish above Tuesday’s low of 10,730 and this should spur a bullish FTSE 100 bias, in the case of the S&P 500 it is bullish above 2058 and should also spur a higher FTSE 100. Commodities remain soft and are limiting FTSE 100 gains.
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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