Good morning. An interesting day yesterday with a nice catch of the early rise, closing at 6555 expecting a bit of a dip (bull tuesday pattern being a dip int he morning then a rise in the afternoon) and boom, it just keeps going, thus showing once again how unpredictable markets can be! Anyway, tried the short at 6585 which didn't work, and in fact even after the close we had a quick rise to 6625 before falling back to 6600. Today, if 6604 holds as support could see another test of that high, and if broken then 6650. Support wise the pivot at 6576 looks good for a long. US consumer confidence rose to a 6 year high yesterday which helped the US markets recover their initial drop. After most news being bad, looks like we will get a couple of weeks of good news flow and yesterday marked the switch. Tends to be in 10 day runs of good then bad then good again etc... The main things that might prevent a big push up on the FTSE is the 20 day Raff which we are currently sitting at the top of, and the 25ema both on the daily chart.
FTSE 100 Outlook
I'm thinking dip and rise today, quite possibly down to the support area at 6580 (daily pivot is 6576 as well so 2 supports here), then further rises. The FTSE hasn't broken the 6630 area overnight and did drop back quite fast from the test of that area yesterday evening. However, a further test today could see it break and a spurt up to 6648. Bear in mind the 20 day Raff and 25ema on daily though, which make me thinks it might be hard pressed to push on that much higher, and the S&P has resistance at 1872 which could line up with those levels. If the FTSE were to make a break for it then there is a PRoTrend resistance line on daily at 6675 and the 10 day Raff at 6690.
The reason I have gone for the initial dip is that as you can see on the 30minute chart, there are a cluster of resistance lines around the 6620 to 6630 area.
Gold
Treading water around the 1315 area, though I do think it looks primed for some upside. Would that tally with a decline ion equities though? 1320 is resistance today then 1329. Support 1298 and 1275.
S&P 500
As mentioned in the FTSE bit above there is resistance at 1872 and then 1880. Support is at 1860 and 1855. On the daily chart there is a PRT resistance line at 1878 as well, so I think a short here if seen, with a stop 1882 could work out. 1878 line is the top of a PRT channel on daily.
DAX
If the price can move above 9385 today then 9411 looks likely to get hit. Higher up we have 9444 and 9490 resistance. To turn bearish the price would need to break below 9305. I am thinking a short from the 9385 to 9411 area to that bottom support then bounce today.