It feels like the FTSE 100 is on its half term break as well this week. Still, the short at 6857 worked well for a few points, though the S&P 500 was the star yesterday, dropping off the 1915 resistance and bouncing off the pivot at 1908. All fairly bullish across the board in term of equities, which is seeing gold take a pummelling, down to 1257 now (another support area, but will it hold?).
The 10 day Bianca channel has moved up to 6863 and the 20 day at 6901 though it feels like there is a lid being kept on it at the moment to keep it below breakout levels- 6874 looking good for a short today. European indices are most likely waiting to see what the ECB does next week, hence the lack of volatility.
FTSE Outlook
We have US jobs and GDP news out at 13:30 today so that might cause some movement in the FTSE 100. But, with today's pivot at 6646 and the breakout resistance level at 6874 we once again have a fairly tight range in play today. I am thinking the same again today - dip to the pivot area then slow climb. We also have a fairly decent rising 30 minute channel with support at 6830 and resistance at 6865.
There are still a few big picture resistance levels close by, including the 10 day Raff at 6780 and the 10 day Bianca at 6863. I am still expecting the S&P to reach 1919 though!
With more resistance than support I am favouring the short today, from around the 6870 area which might tally with that 1919 on the S&P.
Daily Raff Channels
Bianca Trends
Gold
Gold has had quite the tumble this week, but without the corresponding uplift in equities. Its on a possible bounce are of support at 1257 now, though still looks pretty weak and a break below this will likely rewash 1230 where the declining PRT line is, and 1165 after that. If it does bounce today from 1257 then 1284, and 1300 are upside targets for the next few sessions.
S&P
This is what I wrote about the S&P 500 yesterday and still looks valid for today, only with the pivot at 1910 today.
Come on bulls, just charge it up to 1919 and we can all be on our way....
Prices are above 1912 currently so look like 1915 and then 1919 are the next resistance levels. Today's pivot is 1908 so a dip below that would scupper the short term bull plan, but is probably a good place for a long if it does dip there. 1919 might not be 'the' top of course but certainly looks achievable at the moment, though there is a possibility it goes even higher to 1930? Imagine, FTSE 7000, DAX 10250, S&P 1930, Dow 17000? Not an impossibility though when all you hear is bullishness - start to go bearish.....
So, for today, support at 1910, movement above 1916.2 (yesterdays high) will get the 1919 which is probably worth a short from with a stop at 1922. We have a PRT line at 1920 as well now to add a bit of weight to that price level. If the bears start charging though below the pivot the next support is 1907.5, a break of which might scupper the bulls party for the moment.
DAX
The DAX can almost touch the 10000 but is probably waiting for confirmation of further ECB stimulus. Could be disappointed if it doesn't get it though! The daily pivot is 9931 so initial support therewith resistance at 9958 leading to 9985, then the headline grabbing 10030 fib level. Bigger picture support is 9830 (10ema on daily) then 9724.