- Global share indices rebounded further Tuesday, with the US Congress apparently in agreement on the $2 trillion economic relief bill
- Global stock averages have overcome through resistance levels, to form bases and signal a more positive outlook in the very short-term.
- This does NOT end the bigger bear market theme, but the threat has switched to further gains and stability in the near term, maybe into the end of Q1.
- Here we focus on the future on the UK benchmark average, the FTSE 100.
FTSE 100 Future day trade outlook: Positive recovery theme
A strong advance Tuesday through various resistances, but notably 5373.5, to secure a small base having built on Monday’s rebound from a new bear move low at 4733 (to close the opening gap lower at 4952-80.5), to switch the risk higher Wednesday.
· We see an upside bias for 5416.5, then 5466; a break above aims for 5523 and 5581, maybe towards 5639 and 5697.5.
· But below 5316.5 targets 5211.5, which we would look to try to hold. Below targets 5156.5, 5061 and 5011.
FTSE 100 Future intermediate-term outlook
A late February plunge below 7164 set an intermediate-term bear trend.
· Downside risks: We see an intermediate-term bear trend to aim for 4701.5 and 4500, maybe 4060.5.
· What changes this? Above 6398 shifts the intermediate-term outlook to neutral and through 6871.5 to bullish.
Daily FTSE 100 Future Chart