The FTSE 100 is looking for a correction lower ahead of this Friday’s NFP report

The FTSE 100 has seen a good couple of weeks during the first month of the new year and since last week the London index has hiked higher trading all the way to the 6,100 points’ area. This is a stellar performance for the FTSE in the midst of the global markets’ volatility and doubts concerning the slowdown of the Asian giants and the way that the key central banks will react to that.

Of course the main topic of debate has been the way the Fed will choose to react to the recent volatility in the markets after having raised their interest rate in December. The general consensus is that the Fed will opt for caution and delay any further rate hikes until the second quarter of the year. In this environment the FTSE 100 and the rest of the major stock markets are finding enough room to move higher.

So looking towards the Friday Non-Farm Payrolls release from the US that will provide us with fresh data about the domestic economy and will allow us to assess whether the Fed is more prone to leave policy as it is for now the FTSE seems poised for a correction. At the time of typing I am looking at the London index attempting to break below the 6,000 points’ support and that will be my game plan for this week up until the Friday NFP report.

Should the FTSE manage to break clear below the 6,000 point’s area then I am looking to short the index towards the 5,000 points’ support. There lies the more medium-term pivot level which will decide whether the FTSE will look to reclaim the 6,000 points’ and above area or a further correction will drive the index towards the 5,800 points’ support base. But that’s to be decided after the NFP report so for the short-term focus I am looking to short the index targeting the 5,900 points.

alpesh

If you want daily trade signals on the FTSE 100 and the Euro, the Pound, Gold and more Forex, Stock Indices and Commodities instruments I am recommending my Sentinel Signals report that has an impressive performance. You can find more information on Sentinel Signals by clicking on this link.

Be the first to comment on "The FTSE 100 is looking for a correction lower ahead of this Friday’s NFP report"

Leave a comment

Your email address will not be published.


*


error

Enjoy this blog? Please spread the word :)