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FTSE 100, S&P 500 Short Term Forecast

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Stock market forecast for swing traders on the FTSE 100 and S&P 500 using technical and Elliott wave analysis.

FTSE 100 Key Levels

Cash prices

4th resistance	6770	Previous support line
3rd resistance	6754	2007 high
2nd resistance	6739	Resistance line
1st resistance	6727	Yesterday's high
1st support	6670	Yesterday's low
2nd support	6632	Previous resistance line
3rd support	6628	55-90min moving average
4th support	6535	38.2% Fib retracement
5th support	6419	Previous resistance line
6th support	6417	61.8% Fib retracement
7th support	6403	Previous resistance line
8th support	6345	Support line
9th support	6252	Support line
10th support	6225	Previous low
11th support	6077	200-day moving average
12th support	6000	Support line

 

If you are short:

1st resistance at 6727 (Friday's high). Weak stop loss above that level.

2nd resistance at 6739 (resistance line). Fair stop loss above that level.

3rd resistance at 6754 (2007 high). Strong stop loss above that level.

If you are long:

1st support at 6670 (Friday's low). Weak stop loss below that level.

2nd support at 6628 (55-90min moving average). Fair stop loss below that level.

3rd support at 6535 (38.2% Fib retracement). Strong stop loss below that level.

The Stock Market Trend of Ignorance Continues Unabated

By The Disciplined Trader

As the markets climb higher I have sat on the sidelines and watched this amazing run up. Yesterday’s short-lived decline in the FTSE 100, on bad economic data, came after a 10-day winning streak and the markets have resumed higher today. It feels like nothing can derail this mighty bull. Calls for a correction are growing louder and what I find troublingis that despite the bad economic data the markets just don’t seem to care.

In the last two days there have been four reports that were worse than expected: EU GDP; US industrial production; US housing starts and US jobless claims. Yet people continue to buy this dreary news!

Ignorance of the broader macro picture has been blissfully rewarding, but why? It could be the sense of security offered by perpetual stimulus, but isn’t that too good to be true? Apparently not for the stock market, it’s become a one-way bet as echoes of 1999 eerily spring to mind. I was trading technology stocks back then.The market kept rising day-after-day, bad news was ignored and complacency became the norm. Until finally, on a normal trading day in the year 2000, momentum ground to a halt, the bandwagon back-fired, buyers stopped buying and the stock market crashed back to earth. It was something I’ll never forget. So ‘let the buyer beware’in 2013 that if this irrational behaviour continues, we could see another crash soon.

Therein lies a warning from our stock market past and I have learned that this type of behaviour is dangerous – the illusion of a healthy market is but that - the facts are very different! I believe the markets are overshooting to the upside, so I will remain on the sidelines until I spot a good opportunity, the obvious resistance in the FTSE being the July 2007 high of 6754.

The Disciplined Trader is an average guy who has little fundamental knowledge of the financial markets, yet he consistently makes money trading. He simply applies the basic rules of trading discussed in bettertrader.co.uk and executes his trading techniques applying great discipline.

FTSE 100, S&P 500 Short Term Forecast

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Stock market forecast for swing traders on the FTSE 100 and S&P 500 using technical and Elliott wave analysis.

FTSE 100 Key Levels

Cash prices

4th resistance	6754	2007 high
3rd resistance	6742	Previous support line
2nd resistance	6728	Resistance line
1st resistance	6702	Yesterday's high
1st support	6669	Yesterday's low
2nd support	6631	Previous resistance line
3rd support	6579	55-90min moving average
4th support	6519	38.2% Fib retracement
5th support	6426	Previous resistance line
6th support	6407	61.8% Fib retracement
7th support	6396	Previous resistance line
8th support	6328	Support line
9th support	6249	Support line
10th support	6225	Previous low
11th support	6067	200-day moving average
12th support	5993	Support line

 

If you are short:

1st resistance at 6702 (yesterday's high). Weak stop loss above that level.

2nd resistance at 6728 (resistance line). Fair stop loss above that level.

3rd resistance at 6742 (previous support line). Strong stop loss above that level.

If you are long:

1st support at 6669 (yesterday's low). Weak stop loss below that level.

2nd support at 6631 (previous resistance line). Fair stop loss below that level.

3rd support at 6579 (55-90min moving average). Strong stop loss below that level.

FTSE 100, S&P 500 Short Term Forecast

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Stock market forecast for swing traders on the FTSE 100 and S&P 500 using technical and Elliott wave analysis.

Today's FTSE 100 Binary Tip

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Binary betting on the FTSE 100 is fun. We tell you if the FTSE 100 will close up or down at 16:30. Click here to learn more about binary betting.

FTSE 100 Key Levels

Cash prices

4th resistance	6754	2007 high
3rd resistance	6742	Previous support line
2nd resistance	6725	Resistance line
1st resistance	6686	Yesterday's high
1st support	6622	Previous resistance line
2nd support	6618	Yesterday's low
3rd support	6554	55-90min moving average
4th support	6510	38.2% Fib retracement
5th support	6429	Previous resistance line
6th support	6401	61.8% Fib retracement
7th support	6391	Previous resistance line
8th support	6327	Support line
9th support	6248	Support line
10th support	6225	Previous low
11th support	6062	200-day moving average
12th support	5992	Support line

 

If you are short:

1st resistance at 6686 (yesterday's high). Weak stop loss above that level.

2nd resistance at 6725 (resistance line). Fair stop loss above that level.

3rd resistance at 6742 (previous support line). Strong stop loss above that level.

If you are long:

1st support at 6618 (yesterday's low). Weak stop loss below that level.

2nd support at 6554 (55-90min moving average). Fair stop loss below that level.

3rd support at 6510 (38.2% Fib retracement). Strong stop loss below that level.

Today's FTSE 100 Binary Tip

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Binary betting on the FTSE 100 is fun. We tell you if the FTSE 100 will close up or down at 16:30. Click here to learn more about binary betting.

FTSE 100, S&P 500 Short Term Forecast

Premium Content

Please login or register

Stock market forecast for swing traders on the FTSE 100 and S&P 500 using technical and Elliott wave analysis.