Index Review

Well the FTSE stayed strong for most of yesterday, awaiting the return of the US markets after the their long weekend. The US opened strong also, but as the trading day evolved, sellers emerged driving the US & European Indices lower. The FTSE is currently trading around the area of resistance (now support) noted yesterday, so direction from here is key, in that it may set the tone for the rest of the month or even the rest of the summer. No major figures out today, so the European indices may well be taking their lead again from the US when the markets re open this afternoon.

Advertisements

Morning view

A healthy start to European Indices, which are trading back up to levels which were important support levels broken through last week (now resistance levels). Its not unusual to see markets retracing back to key break out levels; so the key is can these indices hold these higher levels when the US markets open after their long Independence Day weekend…
Broadly, technical resistance exists at the 4900 level in the FTSE 100 Index and 5900 level in the Dax Index. All eyes on the US markets this afternoon..

Quiet before the storm..

Markets very quiet today; partly because of the US holiday (Independence Day), and partly because we think summer has arrived, especially in the UK ! But the problems which ignited market volatility several weeks ago still exist, and are likely to rear their ugly heads again in the near future. So beware of these quiet markets, as they often precede large moves, creating great trading opportunities.