Bull Monday was in effect yesterday, with the S&P leading the charge. We didn't quite drop down to the 2803 support, but bounced at 2803.6 for a decent run up to the 2319 resistance level in fairly short order, mainly driven by news of the end of the government shutdown.
After a small dip, the bulls were back on it and the S&P is now at 2838.That should help drag the FTSE 100 through the 7740 resistance level that held yesterday. Again the FTSE 100 dipped but bounced 2 points above the 7701 support level. Feels like they spy on the order levels sometimes doesn't it! If the FTSE 100 can push above 7749 this morning then we should see the fib level of 7772 tested. It's looking like another strong week for the bulls so could well break above the 7794 resistance level seen previously.
Stock markets yesterday certainly shook off the warning from the IMF that things are getting a little overheated, and that investors and policy makers should guard against complacency
The IMF has also upgraded its global GDP growth forecast to 3.9% for 2018, predicting Donald Trump's tax cuts and accelerating growth in Europe and Asia to provide tailwinds for the global economy. However, the IMF predicted that growth in the UK will slow to 1.5pc this year and added that Mr Trump's corporate tax cuts will actually hinder growth in the US after 2022 as it attempts to rein in its budget deficit.
For today I am expecting the FTSE 100 to push a bit higher towards the 7774 fib level and build not he rise from 7703 yesterday. The 2 hour chart is still bullish, the commodity heavy ASX 200 rose back above the 6000 level (though there is daily resistance at 6052 that is worth watching for a possible short) and we may well follow suit. The bulls will be keen to recapture the 7795 resistance and recent high for a push above 7800 - will be interesting to see if it sticks though as 7810 is daily resistance just above that.
The daily chart still have support at 7676 for today, and the pullbacks have been so shallow since we started this run higher in early December, that we have yet tested the 25ema on the daily chart. If we do then we should see it hold initially.
Since the drop off the 7793 level the 10 day Raff has started to head down, however, the 20 day Raff channel is still firmly up - with support at 7700 for today. Buying the dips on the FTSE 100 is still the preferred play for the time being, but today I am watching the fib an top of the 10 day Raff channel at 7775 area as initial resistance.