The FTSE 100’s gradual advance from its mid-January low at 7,403 accelerated to the upside on Friday amid rallying luxury good stocks and general risk-on sentiment with the index gaining 1.4%. Monday morning is likely to be quieter, though, as the economic calendar looks pretty empty ahead of this week’s US Federal Reserve (Fed) and Bank of England (BoE) monetary policy meetings, earnings by five of the ‘magnificent seven’ US stocks and US employment data.
A rise above Friday’s 7,653 high would engage the 11 January high at 7,694. Minor support comes in around the 12 December 7,609 high and at the 16 January 7,587 high.
Retail trader data shows 45.35% of traders are net-long with the ratio of traders short to long at 1.20 to 1. The number of traders net-long is 0.72% higher than yesterday and 41.07% lower from last week, while the number of traders net-short is 0.67% higher than yesterday and 99.34% higher from last week.
The S&P 500 is seen trading close to last week’s record highs made marginally above the 4,900 mark as investors await earnings by the likes of Alphabet, Amazon, Apple, Meta, and Microsoft which are likely to provide additional volatility.
A rise above last week’s 4,907 record high may engage the psychological 5,000 mark. Minor support below the Tuesday 23 high at 4,877 comes in at Friday’s 4,871 low.