Well we got the rally and then the dip yesterday, though the bulls have certainly found some strength as they managed push through the resistance levels just prior to the dip. As such, its looking like a more positive Friday session across the board, as Asian markets looks set to close the week on a positive note. The FTSE 100 managed to push to 7265 yesterday before dropping back to 7210 though the rise was slow to arrive. Was quite surprising to see the S&P and FTSE get as high as they did though - the fact they all then pulled back sharply suggests the initial rise was built on sand though (pump and dump!)!
The FTSE now needs to break 7282 to push back towards Sunday's high at 7328 (been watching for that all week and also been slow to arrive!). Support is as the 7224 level initially this morning, with 7187 (yesterday's low) below that. Should that break then the 7150 level is still on the cards.
After yesterday's plan for the rise and dip, which did pan out, just rising a bit higher than expected and stopping out my FTSE and S&P shorts, the bulls look to be gaining the upper hand with various 2 hour charts now supporting the bull case. Support is at 7224 on the FTSE 100, 12421 on the Dax and 2712 on the S&P, so buying any dips down towards these levels look to be worth a go today. Looks like we may well end the week out strongly, and after a week of waiting, finally see the 7328 level on the FTSE 100 - if the bulls can break the 7285 resistance area.
If the bears gain some strength however and can break yesterday's low at 7187 then a trip down to 7150 looks likely, and there is still support at 7090 - a level that looks pretty strong and where we may well see a bounce (maybe even becoming the higher low for the moment and a climb back towards 7400).