Bullish FOMC Tone Boosts Dow Jones Spread Betting Market to Pre-Lehman Levels

Bullish FOMC Tone Boosts Dow Jones Spread Betting Market to Pre-Lehman Levels

The rally continues for indices spread betting markets, led by US stocks which are basking in their own mini recovery.

Things couldn't be better there for the incumbent President ahead of elections in November as only a year ago it looked like Obama was one of the most unpopular people in the country.

Now that unemployment in the US is falling, the economy is growing and looks set to avoid a double dip recession, and American shares are rallying, this will help confidence across the board, almost certainly guaranteeing his re-election.

The shorter than normal FOMC meeting last night struck a bullish tone and fuelled the rally in the Dow which was already posting decent gains early on in the session.

The recent rally can be attributed to the ongoing promise of stimulus from central banks should it be needed.

Whilst last night didn't open the door for QE3 in the US, financial spread betting investors are happy that they've seen it before and they'll see it again if growth starts to take a dip.

We know that interest rates across the pond are going to remain at their record low levels into 2014 and that policy is likely to rub off over here. It seems inconceivable that, when inflation is falling, the BoE or ECB will want to hike interest rates.

So the rally in the Dow Jones spread betting market not only took it firmly above and beyond the 13000 mark, but it recorded its highest level since 2007. That is really is remarkable as it takes us back to pre-Lehman times.

This morning we are seeing this bullishness translate into gains for European equity markets as the FTSE 100 has opened up some 20 points at 5975.

Our quote even hit as high as 6000 and this will be the next target for the bulls. The impressive recovery by indices since their little retracement last week has brought those resistance levels and highs for the year back in focus.

The 5950-75 area has been the big hurdle for the FTSE 100 and so as we trade around and above here the focus is on the next targets of 6000, 6030/45 and then 6100.

To the downside support is seen at 5950 the near term upward trend line, 5915 and then 5870/50.

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