Yesterdays long didn't work with the sharp drop at the open hitting the stops pretty soon after the long order took. It did bounce back though and there are still resistance levels around the 6860/6880 areas. We are getting lower lows with each drive down by the bears so it might only be a matter of time now till 6800 breaks.
6860 looks important at the moment though and if prices hold above that today then we might not get the drop for a little while. The bottom of the Raff channels are what held it again yesterday (10 day as opposed to 20 day) and have done so on a couple of tests now.
Bull Tuesday today with a 5.4 divi, but more importantly the 30 minute chart looks alright for a bit more upside (is that famous last words?). Today's pivot is 6837 so could be initial support on any opening dip.
FTSE Outlook
I was a bit too optimistic on the FTSE 100 yesterday and that initial move down through the supports only found a bottom at the 10 day Raff before bouncing back. Unfortunately, the lower short order just missed - one of those days! Resistance is still 6857 today with immediate support at the daily pivot 6837.
Above 6857 the other resistances aren't actually that far away - 6863, 6867, 6883 being the closest and main ones. We do also have the 10 day Bianca channel at 6911. Support on the 10 day is 6832 - around the pivot level also. Yesterday's rise was on quite low volume so I am still wary of being too heavy long.
I would prefer bigger shorts off the resistance levels at the moment. But I think that 6835 area might hold, with a stop just below the 6828 area, as if that level breaks it suggests that 36804 is likely to be tested again (and if the lower lows continue, maybe broken this time)
In the bulls favour there is a rising channel on the 30 minute chart with support at 6845 for today. The 2 main levels I am going to watch for today are a long off the 6835 area, and a short off the 6868 area.
Daily Raff Channels
Bianca Trends
Gold
Support is 1288 for gold today. Yesterday's brief foray above 1300 means that it needs to break 1305 to continue higher. Below 1288 the next support is 1285.
Until equites turn down I think gold is going to hover around this level until we get the "short equities, long gold" situation.
S&P
- Resistance is 1886 today, then 1892, 1897.
- Support is 1879 and 1872.
The daily pivot for the S&P 500 is 1881 and looking at the 30 minute channel we have the coral trend line there as well.
The EMAs are still bullish on that lower time frame so we might well get a push up to the 1892 level today, but it all hinges on 1886 - that's looking like a fairly key area.
DAX
Once again there was some wild swings on the DAX yesterday. It dipped down to the support, blew that away then bounced and added more than 100! On the positive side for the bulls, the 10 day Raff channel held. Resistance today is initially at 9690 then 9715.
That said, if the bulls continue the rise then 9750 area looks likely. The daily pivot is 9623 so that could act as initial support - and could tally with the FTSE testing the 6835ish area.