With the US markets closed yesterday the FTSE 100 was fairly flat, with the big news being Carillion (LON:CLLN) going into liquidation with far reaching repercussions for lots of smaller companies. Despite being closed, the Dow Jones managed hit 26,000 for the first time and it's back above that level this morning, while the dollar dominated trading on Monday as it headed for a fourth day of declines, weakening against every major currency. Cable is now at 1.38 but not driving the FTSE 100 down so far.
For today I am thinking a pretty similar plan to yesterday. Resistance is around the 7787 level to start with, but if the bulls push above this then a rise to 7823 looks pretty likely. Above this the next resistance area is still 7840.
We have earnings this week and Chinese GDP on Thursday as the main market movers.
Support-wise today then we have 7759 and 7755 as the main areas, with S2 at 7742 below that. The main thing to watch today is the cable move, and you would expect the FTSE 100 to have dropped back a bit as that's risen to 1.38. But it hasn't so far, but will be watching the resistance levels closely today. As cable rises, normally the FTSE 100 would take a breather or drop a bit, however, even with it pushing on to this 1.38+ level, the FTSE 100 has remained steadfastly bullish. The bears certainly haven't been around much this year so far!
The bulls will be keen to break the 7787 level and that opens up a rise towards the 7840. We may well see a stutter at this level as it will be the first time we have tested the top of the 10 day Raff channel for a while, a break of this level will likely see more upside quite quickly, Tight stops on shorts then!
For the moment therefore I still maintain a bullish stance unless a move below 7540 occurs, in which case we may start to see the bears reappear for a drop down to 7700.