10.1% CPI Inflation With FTSE100 Resistance At 7600

Stocks rose in Asia on Wednesday amid speculation that China may roll out more stimulus to shore up its ailing economy and as some robust US earnings delivered a boost for sentiment.

The FTSE100 stalled at the 7560 resistance level and that remains the level to break for the push towards the 7600 level now. We have just had the CPI inflation data out, at 10.1%, above the estimate, however, the reaction on the FTSE100 so far is fairly muted. Was probably expecting worse!

For today, therefore, the bulls will be aiming to push up toward the 7593 level where have R2 for today and close to the round number at 7600. Above that then the R3 level of 7620 is next up, and we are also closing in on the top of the Raff channel top on the 10 day. That is at 7623 for today. 7645 is then daily resistance above that.

The S&P500 bulls will be aiming to break above that 4325 level that got the reaction yesterday and will be aiming for a push towards the 4349 level where we have R2 for today. That said, with the drop off 4325, the 2h chart has gone bearish and has 4320 as resistance now, so the bulls have their work cut out. They will need to defend the 4290 level again, otherwise, we will likely see a slide down to the 4258 level where we have the 30m 200ema.

The FTSE100 bears meanwhile will be aiming to take this down towards the 7520 level and lower. We could well see this hold though as we have the green 2h coral here and also the 30min 200ema which can be decent support/resistance.

Below 7520 and then we will be looking at 7502, and we are then at the bottom of the Raff channels, with both the 10&20d ones around the 7490 level.

It will be interesting to see if the market shrugs off the inflation figure. In theory, it lends weight to continued rises on interest rates. However, there is only so much they can do in terms of increasing it and not screwing too many of the masses who are being hit with falling wages and rampant inflation already. Going to be a lot of businesses struggling by the end of the year as revenue drops!

Today should see a dip and rise play out though and I would like to see any dip stall at the 7520 level to tee up a bush push towards the 7600 area. That said, a lot will depend on the USA and we will need the bulls to play ball for a push towards the 4350 level on the S&P.

Good luck today.