Bulls push on but will we see 7777 soon

Well that gave the markets a boost as the seasonality continues to play out. Buy the dip still the bias for the moment (since mid October!) and the run in for the end of the year starts now. We should get an initial kick up this morning with the new month money, however a drop back to cool things down a bit would then make sense. 

R1 and the key fib are at the 7641 level so I am thinking that this will be initial resistance and a drop back from here to the daily pivot at the 7585 level would make sense. Below this then we have the Hull MA on the 2h chart at 7570, and that will be the first test since it went bullish on Tuesday. I would like to see this level hold, otherwise a slide down to the 7530 looks like it will materialise as we have the key fib and 30m 200ema here.

The Raff channels continue to head up of course, and that's the same on the S&P500 and the Dax40 as well. The 25ema on the daily remains untested still, and is now sitting at 7375, a level that I don't expect to hit today!

If the bulls were to break above the 7650 level today then we will probably see that 7700 daily resistance level that flagged up at the start of the week. While it felt miles away its actually rather close now! That's just above R2 and also the top of the 10d Raff then R3 at 7741 above that. That might be a big ask for today though!

Below the 7530 level then 7491 is S2 and also the bottom of the 10d Raff channel. Could possibly go that low later though it doesn't look very likely, and I would be more inclined to go with the 7585 level holding. 

The S&P500 however looks like it could potentially drop down to the 4000 level still, and would have a decent test of the 2h supports there. That said, the daily pivot at 4037 aligns with the green 30m coral and may well act as initial support. If we see the bulls appear here then a rise towards the 4137 R1 level looks likely. 

On the Dax40 I am looking at the 14420 level to hold as support on any early dip. 

Good luck today.