FTSE 100 Soars To New Highs, Set To Remain Bullish
- FTSE 100 soars to new highs
- Yesterday’s U.S data like Markit Services PMI and durable goods orders should keep the FTSE 100 bullish over the next few days
FTSE 100 soars to new highs and takes out the November 19 high of 6367 in the process. The break to 6367 opens up for a rally towards the November 5 high at 6422. Short-term traders will probably use the 6320 intraday low from November 25 as a base for long positions aiming towards the 6422 high.
There are no lack of drivers to the current rally, rather I see the stock market as catching up with yesterday’s U.S data. Growth indicators like the Markit Services PMI, durable goods orders, and jobless claims beat expectations, while inflation (PCE and Core PCE) remained unchanged and did not increase as the market had expected.
This really is the best of both worlds as equities tend to rally on prospects of higher growth and low inflation. Such does not warrant aggressive rate hikes by the Fed.
The low inflation makes it also less likely to get aggressive positioning in the Dollar, helping commodities and in return the FTSE 100.
There is no key data on tap today.
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
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