Friday, 8th November 2019 09:03 - by Rajan Dhall
The FTSE 100 is now lagging further behind its US counterparts now as the Dow, S&P and Nasdaq are hitting or are near all-time highs.
Germany's DAX is also not too far off a major resistance zone and the FTSE struggle to hit the 7440.8 wave high.
The high I am speaking about can be seen on the weekly chart and not the daily one below. It currently stands at 7903.5 but the FTSE price must overcome the levels below first.
Recently on the macro front, the US and China seem to be getting on better as it has been reported that a deal may be working out on rolling back existing tariffs to get this phase one deal through.
There was a minor setback the other week after the meeting that was scheduled for this month got delayed until the Nato meeting in early December.
The market overcame this hiccup as the tariff repeal news hit the wires and equities markets resumed their trend higher.
Looking at the chart below, It still seems to be a positive one. The Bank of England and the UK government seem to be willing to support markets with spending and on the BoE front, 2 members voted for a 25bps rate cut at yesterday's meeting. If the chart breaks above 7440.8 it will make another higher low higher high wave which would be seen as a positive technical signal. There was a trendline break and sometimes we can see a retest so dont be surprised if we see another move (retracement) slightly lower but overall the key signal would be the break of 7440.8 and 7523.1.
It seems the political situation once again is hindering progress. Once the election is out of the way next month maybe we can look for a test of higher levels. Obviously depending on the outcome and it seems that anything can happen with UK politics.
FTSE 100 (candles) SPX (orange) Dax (blue)
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.