FTSE 100: A Christmas Rally Might Be Underway
- A FTSE 100 Christmas rally might be underway as it tries to take out last week’s high
- The final word on the breakout will probably be determined by today’s batch of U.S. data
- DAX 30 and S&P 500 don’t show the same buoyancy as the FTSE 100
FTSE 100 traders are doing their best to break last week’s high of 6172. If they are successful the index may reach the December 4 high of 6297, with gains extending to 6400 over the next few days on a break to 6297.
However, whilst the FTSE 100 is higher, the DAX 30 and S&P 500 are far from showing the same buoyancy and need to break resistance before they can push higher. The DAX 30 and S&P 500 not participating in the FTSE 100’s rally may result in a false breakout for the FTSE 100.
Data on tap in today’s session is U.S Durable goods orders. A Bloomberg economist poll anticipates an outcome of -0.6% MoM from 2.9% in October. A higher than expected reading might be what is needed for the FTSE 100 breakout to be successful. If the reading is worse than expected bullish traders may give up their bullish positions.
Other data on deck is U.S. PCE inflation reading, Personal Spending and Income, New home sales and the final reading of U. of Michigan sentiment. For a complete list of today’s economic indicators please see our economic calendar.
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FTSE 100 / UK100
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.