The FTSE 100 bulls failed to break above the 7562 resistance yesterday with a drop during the course of the session to the 7530 area. The main news yesterday was that the House passed the tax bill, though afterwards it came to light that it may need to be done again due to some 'discrepancies'.
For today we might well follow Asia's lead and have a bit of a static day (famous last words), with another attempt to break the 7560 level. The trades have worked well this week with the rises up to the resistance levels we had for Monday and Tuesday and then a dip back down, so be careful not to push my luck for the next three sessions!
I feel that the failure to break the 7560 level yesterday was a bit telling, and we may well see a bit of a dip down from this area to the 7450 level over the rest of the year. There is daily support here. Maybe the rises Monday and Tuesday were it for the 'Santa Rally'.....
The bears on the S&P tried to break below the 2683 support level but the bulls fought back and the futures prices have risen back to 2687. There is however now 2 hour resistance at 2691. The bulls will be pretty keen to get the S&P500 to 2700+ and the Dow to 24,000+ for the year end for some positive media coverage.
For the FTSE there is decent support at the 7523 level with the 2 hour coral here, and also S1. If the bears break this level then I am watching for a trip to 7448 where we have daily support.
The bulls will be keen to break above 7560, and as mentioned yesterday a session close above this level will likely lead higher.