So, what does today have in store for us...I am looking at the cluster of resistance levels at the 7210 to 7225 area and in light of the fact that the ASX 200 had a bearish session then we may well follow the same pattern, and selling the rallies for today may well play out. Of course we have the looming spectre of Brexit deals and cable in the background to change things in an instance. The S&P is dropping off from the 3000, but the bulls are hanging on still.
The bears need to break below the 2987 level (2hr support here) for further downside on that. If they do then that should bring the FTSE down towards the 7120 support area.
Initial resistance today is at the 7182 level where we have the 200ema on the 30min, and not far above where we are looking at opening. Its all been fairly calm overnight, with the bulls holding onto the bounce from 7148 yesterday. However the daily and 2 hr charts remain bearish for the moment, and the bulls will need to break above 7240 to gain the upper hand, and 7280 to make it stick.
If the 7221 level holds as resistance then we should see a leg down in a similar pattern to yesterday, with the 7140 still showing as support for the moment. However, if Brexit drives us down we may well get down to the lower support at 7120 today, and this level I am thinking will see a bounce. With S1 and the key fib here I would expect it to hold, as if it doesn’t then the bottom of the 10 day Raff channel comes into play at 7070, and along with S3 at 7064.
Boris Johnson’s hopes of leaving the EU with a Brexit deal appeared to be in the hands of Parliament on Wednesday night after Brussels said an agreement was effectively in place. Donald Tusk, the European Council president, said the “basic foundations of an agreement are ready” and could “theoretically” be agreed with Britain on Thursday.
So another day to stay nimble and keep watching the news flow…