Bulls need to defend 6920 today

Stocks slipped in Asia on Monday after a surprise drop in U.S. unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again.

The bulls defended the 6960 level well on Friday however the futures have dropped back and that brings the next support level at 6920 into play. We may well get a rise and dip play out today for a but of bull Monday this morning though if we see 6920 hold. 

As I write this we are just double bottom'ing with the overnight low at 6936 though so may see the bulls appear a bit sooner. Either way, the bulls will be aiming to get a rise towards the daily pivot under way, at the 6985 level. We may well see a stutter here as we also have the 30m 200ema at this level.

Above that the the 7020 level looks decent resistance as we have the now bullish 2h chart showing both the red coral, and the Hull MA here and as such this level is worth a short - possibly for a bear Tuesday tomorrow.

We have the US CPI out on Thursday so may well see a rise as we head towards that - buy the rumour sell the news once again. We are also coming into earnings season starting on Friday.  Earnings will likely be poor and estimates will come down but will be better than feared.

For the bears, they will be looking to break below the 6920 support as that would allow a trip down to the next daily support at the 6862, along with S3 at 6886. If we were to see that area today then I am thinking it would probably hold as that could align with S&P support at the 3600 level. 

S&P500
As with the FTSE100, I am thinking a rise and dip today and would like to see the 3920 level hold initially. Below that then the 3960 level as mentioned is next up. The bulls really need to be quick out the blocks on this today, to get a rise back towards the 3700 level. In an ideal world a test of the 3720 level today would be good, and then above that we have the 2h levels both at 3764 for resistance (though slowly moving down so possibly around the 3755ish area by the time they get tested). A short off these would also make sense. 

So, good luck today, lets see if we get a rise and dip play out.