- The FTSE 100 is bearish below the February 23 high of 6036 and traders will most likely see a corrective move as an opportunity to short-sell.
- This week’s soft PMIs (Services and Manufacturing) should keep the FTSE 100 soft.
The FTSE 100 (FXCM: UK100) has clawed back 50% of its decline from this week’s high of 6067. And may remain bearish as this week’s macro-economic data reports hint at a slowdown in economic growth across the U.S., Europe and Japan.
The latest soft report plaguing investors is yesterday’s U.S. Markit PMI Service which dropped to 49.8 vs. a Bloomberg News poll projecting an outcome of 53.5. The weather is blamed, but traders tend to head for the exit first and ask questions later.
This afternoon, Jobless Claims and Durable Goods Orders might try to remedy the bearish bias, but I suspect it will take more than better than expected outcomes to end the short-term downward trend for the FTSE100.
For now the trend is bearish below the February 23 high of 6036 and traders will most likely see a corrective move to the 5929 to 5981 range as an opportunity to short-sell the FTSE 100. Targets for bearish traders are yesterday’s low of 5845 followed by the February 16 low of 5804.
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FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
— Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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