FTSE 100 is slightly correcting lower, but remains supported. SPX 500 would continue to move higher in the near term.
FTSE 100 Index Forecast – Corrections Are Limited
- The FTSE 100 index after forming a short-term top at 7,564 started a downside move.
- There is a short-term descending channel forming with support at 7,500 on the 4-hours chart of FTSE 100 Index.
- Today in the UK, the Claimant Change for Sep 2017 was released by the National Statistics.
- The forecast was slated for 1.0K, but the actual was lower, as the change was 1.7K.
The FTSE 100 index made good ground recently and moved above the 7,500 level. The index formed a short-term top near 7,564 and later started a downside correction.
At present, there is a short-term descending channel forming with support at 7,500 on the 4-hours chart of FTSE 100 Index. On the downside, the channel support remains a crucial barrier near 7,500.
Below 7,500, the next support is around the 23.6% Fib retracement level of the last wave from the 7,195 low to 7,564 high. It seems like there is a chance of a downside extension towards the 7,500 and 7,450 levels before the index resumes its uptrend.
On the upside, the channel resistance is at 7,550. A break above the channel resistance and the last swing high at 7,564 would open the doors for a move towards the 7,600 level in the near term.
UK’s Claimant Count Change
Today in the UK, the Claimant Change for Sep 2017 was released by the National Statistics. The forecast was slated for a change of 1K compared with the previous reading of 2.8K.
However, the actual result was lower than the forecast as the change was 1.7K. The unemployment rate remained at 4.3%, similar to the forecast of 4.3%.
Looking at the Average earing including bonus, there was a rise of 4.2%, which was more than the forecast of 2.1% and above the last +2.1%. The overall result was positive, but failed to help GBP.
SPX 500 Index Forecast – Uptrend Intact
- The SPX 500 Index is trading higher and remains in a major uptrend above 2,550.
- There is a monster contracting triangle forming with support at 2,558 on the 4-hours chart of the SPX 500 Index.
In the last few analysis, we saw a monster contracting triangle forming with current support at 2,558 on the 4-hours chart of the SPX 500 Index. The index followed the triangle and remains in a major uptrend above the 2,550 level.
The index is on the move and might continue to trade higher above 2,560. On the downside, the triangle support is near the 23.6% Fib retracement level of the last wave from the 2,542 low to 2,562 high.
The most important support is close to 2,500 and the 50% Fib retracement level of the last wave from the 2,542 low to 2,562 high.
The overall trend is positive and there are chances of an upside break above 2,562 in the near term.
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