Bulls need to break 7530 still

A couple of tests of that key 7525ish area yesterday that we were keeping an eye on, and the bulls failed to break above it. That is the short term line in the sand, with 7550 remaining as resistance above that. We may well see a bit of consolidation today as it coils ready for another push higher, possibly tomorrow.

The 30m coral is now red and initial resistance from this is at the 7487 level to start with this morning, and just above the daily pivot at the 7478 level. We may well see a drop down off this area then, to test the 7430 support level where we have the key fib and the 30m 200ema. That also ties in with the green 2h coral, so a hold of this would bode well for a bounce, and then that climb back towards the 7530 level.

Above 7487 then 7530 as mentioned, 7550 above that, but then we would start to look at the R2 level of 7584. That may well be a bit optimistic for today though, in the absence of any significant news releases. The market will be trying to get its head round the next central bank steps given the inflation readings this week in the US and UK and as such we may well see some consolidation, especially on the S&P500, today.

On the support side, 7430 as mentioned then below that 7421 for S1, then the round number of 7400. Having done a sterling job of defending that the bulls will not really want to see the price get back down there though so will be aiming to keep the momentum going for a continued rise.

On the daily chart the Raffs are both heading up now, and we may well see an EMA cross over soon, which would lock in the 7440 area as support. Still weak at the moment though and with the 200ema on the daily at 7526 tying in with the high yesterday, that level remains strong resistance.

Not too much more to say really. Once again keep an eye on those key levels and good luck!