Fed minutes last night did much to knock down the idea that 2015 is still a possibility for a rate increase. They are not able to say it themselves, but it seems clear from the language of voting members that this year will slip by without a move on interest rates. With $2.5 trillion ‘wiped on’ to global markets this week as equities rally, the bulls can be pleased with their work. October has got off to a flying start, but there is still much lost ground to recover.
FTSE rally could carry it to 6473
Yesterday morning’s weakness saw support come in at 6300, with a bounce carrying us to fresh multi-week highs. Despite the occasional dip, this rally has been very rewarding for patient bulls, who will be watching the 50-hour SMA at 6376 as a possible area for any support should the index falter early on today. Further upside is possible, with targets around 6473 and then 6600. A move through 6340 would suggest that the bounce has run its course, with a target on the downside around 6254 and then onwards to the 200-hour SMA at 6195.