FTSE 100: A Pullback Looks Likely, Chicago PMI on Tap
- FTSE 100 is bullish above 6220 and traders will probably use a pullback or bullish breakout to add to their long exposure
- Chicago PMI, Pending Home Sale and Dallas Fed Manufacturing are on tap, but not expected to alter the overall trend
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The overall trend remains bullish above 6220 and I expect most traders will seek to buy, either on a bullish breakout or a pullback to support.
A break to last week’s high of 6401 may trigger a multi-day rally towards the November high of 6401. If the FTSE 100 does not break the high, it may drift towards Friday’s low at 6344. In the region of 6344 and 6287 the next bullish leg may have found its base, and traders will probably look to buy a dip here on signs of a bounce. The level zone is derived using Fibonacci, and we used the 6220 low and 6401 high when attributing it to Fibonacci.
Chicago PMI on Tap
Today’s market moving macro statistics will probably be Chicago PMI, which is expected to print 54 from 56.2 (Bloomberg News Survey). This economic indicator was nearing alarmingly low levels in the beginning of the year, but has since recuperated. Strong gains in new orders and production triggered the last round of gains, and the survey highlighted in this report, expects orders to continue to pick up.
Pending Home Sale and Dallas Fed Manufacturing Activity for November is also on tap and expected to print 1.0% (MoM) and -10 respectively. I doubt however that these two indicators will have a long lasting impact on the FTSE 100.
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.