Day Trade - Indices - FTSE100

I have placed a short term trade on the FTSE100 today.

Looking at the following chart we can see that the peaks in prices are coming down, while the support prices are continuing at around 7285.

Background Reasons

Why is the FTSE100 short term trending downwards? Well, I suspect that the positive inflation news story – that peak inflation has been hit in much of the western world and that interest rates are unlikely to rise from here, has dissipated.

Around a week ago I wondered if we might be on the edge of a market rally as relief on the central bankers position on interest rates could lead to a piling in by investors. While that did happen a bit previously on the last set of FED announcements there was not the all out upward movement that I thought could occur.

If the upward movement was going to happen, I think it probably would have happened by now!

I can also see the possibility of greater advances in the Nasdaq and with certain sectors / companies. But the FTSE100 seems to have an ever present weight pulling it slowly back down again when it moves too high.

I continue to have significant levels of money invested in UK companies and also a longer term trend bet on the Nasdaq rising.

Trade

Expected Length: Short Term

Entry Price: 7478.65

Price Target: 7337

Stop Loss: 7484