Lacklustre day for the FTSE 100 yesterday which had a slow decline from the 7690 level to test a low of 7625 before a low key bounce back to 7650. Meanwhile the Dax screamed down 200 points, then climbed back 170, while the S&P shook off the early bearish start and ended the day at a new record high. The FTSE 100 was dragged down by miners and also a stronger pound, while the S&P rise was mostly due to a rise in tech shares. The strong start to 2018 by the US markets has carried through into Wednesday's Asian session, while the FTSE 100 futures remain weighed down.
At 7pm this evening we have the FOMC minutes, which may give some clues on when the next US rate hike will be.
After the drop on the FTSE 100 yesterday the 2 hour chart has gone bearish and has resistance at the 7673 level. With the bulls failing to break the 7705 level so far, this 7673 level looks like its worth a short fro a run down towards the bottom of the Raff channels at 7618 and 7606, with a possible test of the 25ema on the daily chart at 7530 still on the cards.
Gold has dropped off the top of the Raff channels overnight at the 1320 level, so today currently has the first red daily candle on gold since 12 December! Been a decent rise on gold from the lows, and with a bit of bearish media around, is seeing a bit of its safe haven status return. US, NK and Iranian tensions rumble quietly in the distance and something to keep an eye on.
Back to the FTSE 100, and the bulls will be keen to defend the 7613 level if we get that low today, as we have S1 there, with a fib level just below at 7603. The daily RSI has dropped off a bit from yesterday and currently printing at 73, so still a little bit top heavy on the FTSE 100.
If the S&P can push above 2700 today, then I am expecting we will see 2710 this week, but we are currently testing the top of the 10day Raff at this 2696 level. Support for today is at 2686 on the S&P500.
For today on the FTSE I am watching 7673 resistance and 7600 to 7620 as the support area.