Good morning. Yesterday, the FTSE went a bit higher than the main resistance and a bit lower than the main support, but did drop back from the Bianca 6650 level. I expect that 6659 will now be the line in the sand for the bulls to break. Yellen's speech was once again bearish and sent the FTSE down at the close, though the Dow seemed pretty upbeat. Maybe that was a stop killer on the FTSE with the drop to previous support at 6585? Bull Tuesday today (is it going to play out yet again?) and also the first day of the month, plus nearing the end of the opportunity to pump some ISA money in. If we play to form then we should get a dip this morning then a rise this afternoon to 6670. I think there is a decent ProReal Trend channel on the hourly chart with resistance there. Yellen's speech seemed to have more effect on the FTSE yesterday, though she basically said that QE is still an available option.
FTSE 100 Outlook
We are hovering around the daily pivot at 6613 as I write this, however there are a few supports between the 6590 and 6610 areas on the 30 min chart - the green ProTrend lines. I have put an initial drop down to the bottom of that channel but with those supports it might not get that low. It's possible therefore that the pivots all hold, so a long at 6613 with a tight stop is worth a "knife catch".
As mentioned above the bulls will need too break 6659, and with the 10 day Bainca channel top still sitting at that level (well 6657) they might have a bit of a task to do so. That area might be worth speculative short as well. If it does break, then 6674 is the next area of resistance which is around the coral area on the daily chart. There is a ProTrend line there too at 6664 note.
I think for today that 30 minute channel is a good one to watch, and the daily pivot tallies with a rising trend line on the 10 minute also, hence the knife catch trade.
Daily FTSE Raff Channels
Bianca Trends
Gold
This is being a real pain - indications are that it should bounce, yet its treading water with a slow drift down and now looks like it will get that 1275 level. Bulls need to break 1295 today then 1310, but with that declining channel its bearish still.
S&P 500
As you can see below resistance is at 1875 then 1880. Support is 1866 and 1863. I expect an initial dip from the 1875 area then a rise later on.
The hourly chart is showing resistance a bit more clearly.
DAX
Looking at the Raffs below the DAX is still heading up and ultimately the 9750 area beckons I think. Support today is 9530/40 area and 9510 so longs at those levels with tight stops should be good entry levels for further rises.
