Bulls continue to push with 7023 in sight

Stocks in Asia and US equity futures extended their gains as weak US manufacturing data eased bets on the Federal Reserve’s hawkishness.

A decent bull Monday yesterday as the new month money came in after the initial dip down. That dip only managed 6800 and we have now gained 150 points since. The ASX200 had a bullish Tuesday and we may well follow suit, though there is the potential for a little dip down to start with as some longs close after the initial month bounce.

October has got off to its strong seasonal start and if that continues we should see Q4 remain fairly strong now. As mentioned previously I still think cable has decent support at the 100-110 area and we have already seen a decent bounce on that from that area. A dip back down as it's now on resistance at 11350 should present another decent buying opportunity.

For the FTSE100 today, we have initial resistance at R1 and where we are as I write this at 6962 so a drop down from here to test the 30m coral and the round number at 6900 before another leg up would fit well. The S&P500 and Dax40 are also on their R1 levels so again lends some weight to a dip and rise.

Above the R1 level then the bull will be looking to crack the 7000 level again, and we have R2 at 7023 - there is a decent chance that we will see this today, as the S&P bulls will also be looking to push on and pull away from the 3700 level. 

For the FTSE100 bears, as mentioned then 6900 is the first key support, and then we have the 2h Hull MA below that around the 6850 level. That is also just below the daily pivot at 6872, and just above the key fib support at 6830, so in theory that zone would offer up decent support should it get that low. 

Will we get a bear Tuesday? Maybe not today as its been so weak at the end of September the market will be trying for a relief rally to start the month (and of course we have that seasonal October strength). Shorting the rallies played out perfectly for the second half of September, we now need to adjust our mindset to buy the dips for the start of October. 

The various 2h charts are bullish now too so keep an eye on 6850 FTSE100, 12000 Dax40, 3635ish S&P500. 

Good luck today, and let's see if we get a dip rise dip play out again today.