FTSE 100 - bulls need to defend and break 7111

The FTSE 100 bulls hung in there yesterday and we may well see the same sort of pattern today ready for a push up tomorrow ahead of the weekend. Whilst we are below the 7100 level the bulls will be keen to recapture that and consolidate further around here. The 2 hour chart is bearish though and we dropped off the Hull Moving average at 7111 yesterday, and that is the level that they need to push above today. 

Initial resistance is at the daily pivot and 200ema on the 30m at 7100 and as such we may well see an initial rise from this 7080 level to there. I am thinking that we could see the bears try to gain the upper hand initially (for yet another dip and rise day) and drop it down towards the S1 level of 7062, and also the key fib at 7047. If the latter that corresponds with the 7050 level that has held on a few occasions.

If the bears break below 7047 then we have S2 next up at 7036 but a slide down towards the 7000 level looks likely as we have S3 here and also being the round number. I am more inclined to go with 7047 holding though, as the S&P still looks like a push towards 4400 may play out before the end of the week.

If the bulls can break above the 7105 level then we could rise towards the key fib at 7142, if R1 at 7124 gets broken. The bulls will be watching the 4060 level on the S&P closely as thats the key for them - a break of that and it may well get a lot more bearish. If it holds then all good! 

Above 7150 and we have S2 at 7159 - again they are all quite close due to the small range we have had yesterday. 7186 is S3 then the round number of 7200 above that. 7172 is Tuesday high as well to throw into the mix for a weekly double top and then 7222 for the top of the 10 day Raff above that. That also ties in with last weeks high but could well be an area that we see tomorrow if the bulls can stay in charge. The dips on S&P continue to get bought up for the moment as well.