Markets declined yesterday on further profit taking but also setting up a nice dip to buy into. The S&P long at 2558 was nigh on perfect, though the FTSE and Dax slipped a bit lower below their major supports.
The Dax has climbed steadily overnight though and is back above 13000, while the FTSE 100 might well have printed its low at 7355. I do think this dip is just profit taking and a pull back in the overall bullish trend, though there is a chance that the FTSE will go lower towards 7310 now that 7375 is broken. As with yesterday though, buying the dip is a sound play for the moment. The Asian markets have pulled the futures prices up and we could be on for a bullish day, halting 4 days of declines.
I am looking at a fairly bullish day today across the board with yesterday setting the lows for the various indices we look at. As I mentioned yesterday in the group room, I am sure that this dip from 7590 is just profit taking ahead of the year end and we will likely see another leg up as the "buy the dip" crowd come in ready for further upside in December, and probably in 2018. The fundamental outlook hasn't changed since last week really so a rise towards 7400 first thing and 7500 tomorrow/early next week is looking likely.
The 2 hour chart hasn't confirmed bullishness yet for me, but it is very close, and will have 7368ish as support if it does so. A bit of strength first thing should see that lock in. The long at 7375 yesterday was a bit unfortunate as it hit the stop, but maybe was just a bit too early as the Dax regaining 13k, and the SP rising yesterday would suggest that the FTSE should rise too. We still have cable and Brexit weighing things down on that index unfortunately - it's actually made it the trickier one to trade in the past few months.
Resistance wise, 7403 is initial today, with 7425 above that. I can see a rise to 7465 today/tomorrow though where we have resistance on the daily chart - this level could be quite key for the bulls to break.
Buying the dip is my plan for today.