Well the bears have certainly taken the fight to the bulls finally with a drop off the 7793 area, and yesterday we tested the 7684 level (one measly point above the first major support level at 7683!). The bulls fought back at the end of the day across the board, with the FTSE rising to 7715 out of hours, while the S&P climbed nicely with our long to test 2807 before dropping back. The FTSE 100 bulls will need to get the price above the 7720 level today to prevent a further decline towards the 7660/7640 level where there is the daily support.
We have option expiry (opex) today, so bear in mind there will be some hop at 10:10 this morning. Price may well spike up before retracing by 10:20. It can also spike down though.
Its option expiry today so be a bit cautious around 10:10 this morning as it will spike up or down around that time. You can fade the spike for a quick trade if you want.
For today I am looking at resistance around the overnight high at 7716, and if the bulls can break this level then we should see a rise towards the 7750 area.
However, the bears have the momentum at the moment and we still appear to be on the leg down towards the daily support at the 7662 level. If this level holds then it should present a decent swing long entry for a rise back above 7700 and possibly on the way towards 7793+ again. If it breaks however then 7640 is the next support area, with 7550 below that.
The S&P bulls have failed to really recapture 2800 with conviction this week after the drop off 2807, but they will need to break above 2805 for now, Having retraced back to the 200ema at 2789, this area looks like they might defend it, but a dip lower sees 2779 support.
Back to the FTSE and I am thinking that today we see a slow drift down to the 7660 level then a bit of a bounce.