Not much seems to be dampening the bulls at the moment, even the IMF admitting to underestimating the UK growth, which is being reflected in the FTSE 100. Though it’s lagging the US a bit, the S&P 500 and Dow 30 continue to make record highs. And they are not far off their all-time highs at 6930.
Interestingly, to start today we are at the top of the 10 and 20 day Bianca channels at 6880, so an initial dip might happen. Apart from the attack at Karachi airport, and the IMF admitting they were wrong, the news was fairly quiet over the weekend.
If the FTSE breaks its all-time highs, you could say the recovery is complete from 2007 and we are into a growth phase, though the housing market overheating could cause a wobble.
FTSE Outlook
And so it continues, rising and rising, taking out the stops and squeezing the shorters. Today I am going to put a bit of faith in this 6880 area acting as initial resistance as we have both the Bianca channels here so an initial dip to the pivot. In fact, the short from Friday at 6875 is in play now, though the earlier one at 6847 got stopped.
Pending any bad news, it does look like the rise is set to continue, though I am bearing in mind that once all you hear is bullish sentiment, it is the time to be worried.
Ultimately, if the bulls can break 6885 today then 6930 and those all time highs look very achievable. And, of course, a close above that puts 7000 within easy reach. I did expect that later in the year, early 2015 going into the election - maybe they have peaked too early?
Daily Raff Channels
Bianca Trends
Gold
Gold seems to be plodding along around the 1250 area. But as you can see below, it has support at 1250 and 1247, and resistance at 1254 and 1260, based on the PRT channel lines. Bigger picture support is still at 1225 and resistance at 1286. For today, a short around 1257 might pay off.
S&P
The S&P 500 is stuttering a bit at 1950, but has the daily pivot at 1947 for support now. It all looks pretty bullish still and probably on its way to 1975, as it’s only at the mid-point of both the daily Raff channels so no resistance nearby from them (or support).
If it were to suddenly get bearish then the daily 10EMA has support 1933.6 today, though I think that pivot will hold, certainly on an initial touch. So, similar to the FTSE, dip and rise, probably only to the pivot though, and dipping from this to the 1950/1951 area.
DAX
The DAX continues to flirt with the 10000 level. A move above the most recent high at 10014 should lead to that 10031 I had pencilled in a while ago (where we have one of the fib lines). Thereafter, 10047 is R1 and 10073 is R2 today.
Support is 9976 being the daily pivot and could be a good long spot. If not and the price falls below 9950, then it will look better for the bears.