Likely to swing about a bit today as we head towards the speeches and get a flavour of the future central bank thinking on QE, rates, outlook etc.
As such, I am watching the main support at 7385 and the main resistance at 7445 to get reactions there. If the bulls were able to break above the 7445 area then 7463 is the next area of note where we have a key fib level, though it looks likely we would test the top of the Raff channels at the 7490/7500 area. Swing short area here with stops around 7560.
If the bears break below the 7375 support then its going to look quite bearish for next week. We dropped off the daily coral line yesterday at the 7435 level and the bears managed to bring it down to 7400, but the bulls defended that round number so there is still some decent bull strength for the moment.
No point trying to guess what the Jackson Hole speeches will contain so if in doubt, stay out and bear in mind it could go either way. Interesting article on Bloomberg though this morning (what timing eh, so cynical) that the big Wall Street banks think that "global markets are in the last stage of their rallies before a downturn in the business cycle". Good buy signal probably as they try and spook retail into selling...
So, for today I am really watching those 2 levels and see what the reaction is there.
