The global stock rally on the markets cooled yesterday with the FTSE 100 and Dow Jones sinking as attention shifts to corporate earnings season. The FTSE 100 failed to break above the 7728 level and dropped back from there, briefly dipping below 7700 to test the 30min support at 7690. The US markets did recover with the S&P climbing from the 2740 to get near to 2750 again - a resistance level it still hasn't quite managed to reach.
With it being a bit weaker yesterday a few of the charts have taken on a more bearish stance, and the 7728 remains key for the bulls. The 2 hour chart is showing resistance at 7723 now also. Above these levels then 7750 is still the area to watch as mentioned yesterday, and I am thinking that a dip down towards 7600 is still possible ready to push higher over the next few months. The bulls will be keen to put in a strong January as traditionally that sets the tone for the rest of the year. They managed to bounce it just above the 7685 support I had pencilled in for yesterday (as it was hit so late in the day) and that area is support again today.
On the bearish side of the coin, if the bears can break 7693 then a drop down towards the fib level at 7656 looks possible. Of course the bulls will be keen to defend the 7693 so we may not see much of a traditional "bear Tuesday" today.
Crypto had a sell off yesterday with most of them effected after news regulators in China and South Korea are increasing oversight on trading and mining.
In a similar vein to yesterday I am watching 7750 for resistance again today.