For today I am thinking that bulls will build on the break of the 7398 resistance level and we have the next area of note in play which is 7432. This area should get a reaction, and we may well see a retrace back down to the 7395 area - resistance now becoming support. If the bulls can keep the momentum and we get the 'buy the dip' mob come in today, we are looking at a push up towards the 7500 and higher level this week.
The Raff channels are still rising and heading upwards, and various headwinds for the markets are being shaken off at the moment. The FTSE 100 has a decent tailwind from cable at the moment also, which is helping to underpin the rise as the dollar strengthens.
On the bearish side, they will need to break 7395 and will be looking to target the 7350 area where we have a fib level and the 200ema on the 30min chart. We also have the 2 hour coral line as untested support, currently at 7357. So, if it were to dip to the 7350 level it is worth a long here, though I havent put it in the trade plan as I think 7395 will hold.
The slight spanner in the works for the bulls is that the S&P is nearing 2 hour resistance at 2682 area - so it will be interesting to see what happens here. The Dax hit 2 hour resistance at 12591 yesterday and got a small 60 point reaction but has since broken above - the S&P may well do the same as the bullish momentum breaks it through.
Cautiously bullish for today, but watching 7432 and 7450 closely.