Bulls On The Back Foot Again With FTSE 100 Support At 7513 And 7480

Asian shares slipped on Monday and the dollar extended its climb amid angst over global growth as most major banks keep raising rates, while a modest easing by China served only to highlight troubles in its property market.

A bearish start to Monday so far with the S&P testing the key 4200 support level. We may well see bounce here though as the FTSE100 is holding up pretty well and not following it down so violently so far. With S1 at 7513 to start the day I would like to see a climb from here to start with, as below that then the daily support level of 7475 is next in play as we have the 20d Raff channel bottom here. 

The FTSE100 daily chart remains bullish with the Raff channels both continuing to rise, however after the drop on Friday from the 7575 level we have a bearish 2h chart to start the week. Coupled with a weaker Asia session, the bulls are starting on the back foot and a bull Monday will need to be fought hard for today. 

Below 4200 on the S&P then 4190 is next then 4183 for a test of the 200ema on the daily, and just above S2 at 4176. I do think that the bulls will defend that 4200 area though, at least initially. If it breaks through then a drop down to test the 25ema on the daily chart at 4140 looks distinctly possible! 

For the FTSE100 then a rise towards the daily pivot at 7545, and a test of the red 30m coral at 7550 to start with looks possible. The bulls will of course be trying to push higher to try and get that 7600 level once again, though 7575 remains resistance. We also have R1 at 7579, and then the key fib at 7583 for today. 

Above that then 7600 as mentioned, with 7635 daily level next up. Not sure that we will add 100 points from where we are as I write this though! The rate rises are back on the agenda as well though inflation should be tempered soon as oil continues to drop. 

Not too much more to say really. Looking at a rise and dip to play out today and watching that 4200 level closely on the S&P for a decent bounce here. 

Good luck today.