FTSE 100 index ends up 143 points or 2% to 7,177.37

• The FTSE 100 index ended at its highest level in seventeen weeks, up 143 points or 2% to 7,177.37.
• Price is holding above the 100-D SMA and now the 21-W SMA.

This was the highest closing level since 9 October with an additional slump in sterling following data showed that activity in the services sector almost flatlined last month. The CIPS services PMI dropped to 50.1 in January, undercutting expectations, reminding markets that 50 denotes the threshold of economic expansion. The British construction also slowed to a 10-month low in January, also mainly down to holds up in the projects due to Brexit uncertainties. IHS Markit/CIPS's UK Construction PMI for January fell in at 50.6, lower than the December's figure of 52.8 and was a disappointment with respect to the consensus of 52.6. 

Best and worst performers

On the corporate front, oil giant BP was making an impression on the screens today as the top performer, BP (BP.) 547.00p 5.17%, followed by Smurfit Kappa Group (SKG) 2,270.00p 5.09% and Ocado Group (OCDO) 1,034.00p 4.17%, (higher into the close due reports of to  their overseas developmental project). BP said profit in 2018 more than doubled to a superlative $12.7bn vs $6.2bn the year before, citing a strong performance across the business.  The worst performers were SEGRO (SGRO) 641.20p -0.90%, Associated British Foods (ABF) 2,409.00p -0.54% and Fresnillo (FRES) 966.60p -0.47%. 

FTSE technicals

• Support levels: 7042 7016 6974  
• Resistance levels: 7185 7228 7424

The price is holding above the 100-D SMA and now the 21-W SMA, well through the  38.2% fibo retracement of the May 2018 decline located at 7040 and eyes a test of the 50% fino of same range with the confluence of the 7200 psychological level. A mean reversion opens 7111 as the 50% retracement of the move, in line with R2.