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FTSE 100 (UKX)
Here's the predicted FTSE 100 range for this week
By Alistair Strang | Mon, 19th June 2017 - 08:56
FTSE for this week (FTSE:UKX)
At time of writing on Sunday evening, FTSE futures are tending to suggest some optimism is possible near-term. We're a little concerned, as the levels of optimism are frankly not terribly convincing.
While the Dow Jones has a heck of an argument favouring 21,630 as the next major stuttery level, the FTSE 100 (UKX) feels like it shall be challenged to better 7,575 points.
From where the market closed, the argument is of movement now above 7,480 leading to 7,528 points, initially, with secondary, if bettered, at 7,575 points.
The immediate market downtrend is currently loitering with intent at 7,530 points, so we'll not be surprised to see this used as an excuse for some reversal. Unfortunately, the plot thickens.
As futures - at time of writing - are flirting with the 7,500 level, there's a quite strong potential of the FTSE itself being opened up to match futures.
Unfortunately, this sort of nonsense, especially on a Monday, will tend to suggest any opening surge is followed by some reversals, potentially to around the 7,420 point. This, effectively, will ensure the market spends a few days marching on the spot.
Our usual rule of thumb, if an opening spike is not bettered within 90 minutes then expect reversal, remains valid, though it'd be churlish to ignore a couple of recent occasions when this has been ignored.
But if it all intends to go wrong, below 7,400 looks capable of some misery, potentially down to 7,300 as the week continues.
Our suspicion is, in the absence of our glorious government doing something stupid (again), that we shall experience a fairly flat week with the market flapping around between the 7,575 level and down the just above 7,400 points.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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