Well we got the climb across the board as expected yesterday though the FTSE 100 only dipped down to 7260 before climbing for the rest of the day. The S&P managed to push to 2785 by the end of the session, while the Dax tried to break 12600 but has failed so far. Gold unfortunately dipped a bit and didn't really recover, breaking through the 1335 support, and looking more bearish if 1328 breaks.
Asian markets are mostly higher, building on Monday's bullishness, and the FTSE has tested the 7340 resistance level out of hours. If it can regain this area and break above then a rise towards the next key area at 7406 looks possible, however the daily chart shows resistance at the 7341/7365 area still. Support for the moment rests at 7250.
We are now at a few key resistance areas on various chart time frames and it will be interesting to see if the bulls can push much past them. Initially we have the 7341 level which is the one we have dropped off overnight, then 7351, but more major resistance at 7365 where we have R1 and also a key fib level. With the recent rise this sort of area might see some profit taking, as we have the first public comments from Federal Reserve Chairman Jerome Powell later today. We are also getting near to the top of the 10 day Raff at 7373 and a simple standard deviation channel over the past 10 days at 7363.
If the bulls were able to break the 7365 resistance level then its looking good for a rise towards the 200ema on the daily at 7406 currently, possibly with a pause around the 7380 level. Above this then 7425 and 7500 beckon.
Support wise today we initially have the pivot at 7311, then the 200ema 30min at 7268, and we also have a key fib support here. If the bears were to break below this level then a dip down towards 7193 and 7145 is possible. A break of 7145 setting things up to go quite bearish for the rest of the week too so bear that in mind.
However, now the bulls have broken above the 7300 level it does look more positive but as mentioned, watch the 7365 area closely today for a reaction. Assuming it gets there! I am favouring a rise and dip scenario today, but its all up to the bulls to break the resistance levels in play for today, as we are nearing the key daily resistance levels.