We are still sitting at the 7441 resistance level from yesterday and I am expecting a bit of a dip down today. Bear Tuesday after all! The ASX 200 had a sharp fall overnight, even though they left monetary policy unchanged, and we may well follow suit. Oil declined yesterday as well which may weigh on the FTSE 100.
A lot of the FTSE 100 strength yesterday came from cable declining - dropping further and further from the 136 level recently achieved. So much for all those "experts" that were taking about 140!
For today I think the bulls might try an early push but we still have some resistance around this 7441/7447 level as you can see from the list below. If they were to push above this then the fib level at 7469 looks to be worth a short, with 7482 above this. The daily chart has gone bullish though, so any dip may well only get as far as the 7351 area which is support on the daily, while the 2 hour chart is still showing support at 7405 for today. As such, I don't think that we are on the cusp of any major sell-offs at the moment.
If the bears were to take us down from the 7440 area (or maybe just above) then 7415 and 7390 are the first main areas of support prior to the 7350. We are again testing the top of the Raff channels with resistance at the 7447 and 7465 levels, so we might see a bit of a pull back ready to move higher later in the week. Still bullish overall, but expecting a bit of a pull back today.