The FTSE 100 was a little flat yesterday really with a fairly tight range - the short at 6857 worked out for a few points; and the 6827 level was hit out of hours (pretty much exactly, thus allowing for spreads the order didn't take). As such, it still looks bullish on the equities, but gold had a fit yesterday and has dropped right down to support at 1260. 1257 next for that, or even lower at 1202? Doesn't seem that long ago the media were hyping $2000!
On the S&P 500, it still looks like we will get that 1919 level, if the bulls can break 1915. Gold falling, equities rising.... how long will that last?
The ECB are on the horizon with further stimulus measures which is helping the Dax at the moment - not far off the 10000 there either. So, some pretty major headline grabbing figures around - US all time highs, DAX 10,000, Possible FTSE double top with its all time high soon at 6930, etc. Time to keep the guard up with the longs!
FTSE Outlook
It still looks pretty bullish across the board, for the time being. We had a drop off the 10 day Raff yesterday at the 6857 level. Of course, that's slightly wider today as it didn't get that bearish yesterday - the top at 6870 today. Today's pivot is 6839 so I expect any dip initially will find support there as the trend is still up for the moment, albeit on low volume.
Below that 6840 level the next support is 6822 and then 6803. The Bianca 10 day channel is showing support at 6777, though we are breaking above the top of that channel (the channel is probably slightly effected by the bank holiday on Monday though) at 6846.
If we break through yesterdays high at 6857 then 6874 and 6882 look likely, once again testing the top of the 10 day Raff area. I am going to keep it very similar to yesterday - long off the pivot and short off the 6870 level.
Daily Raff Channels
Bianca Trends
Gold
My gold long got stopped out and a good job too, as it fell even further. There is support at 1263 and 1257 for today and after that drop yesterday gold looks ripe for a bounce from these sort of levels. If not, then that new channel you can see below has support at 1202.
A long way from the heady days of 1700. If gold does bounce from these levels then it will need to break ago above 1290 to lead to 1330. Will a rise in Gold coincide with a drop in equities? It is quite well set up that gold is bottoming, as equities are making record highs.
S&P
If the bulls would just charge the S&P 500 up to 1919 and we can all be on our way.
Prices are above 1912 currently, so it looks like 1915 and then 1919 are the next resistance levels. Today's pivot is 1908, so a dip below that would scupper the short term bull plan. However, it is probably a good place for a long if it does dip there. 1919 might not be 'the' top, of course, but it certainly looks achievable at the moment. There is a possibility it goes even higher to 1930.
Imagine: FTSE 7000, Dax 10250, S&P 1930, Dow 17000? Not an impossibility. But, when all you hear is bullishness - start to go bearish.
DAX
Still bullish for the DAX and looks likely to get 10000. The daily pivot is 9924 so as with the others, so that's likely to be a support level today. Initial resistance is 9985 then 10038. If the pivot breaks then the next support is 9877 and 9800, hurting the bull case for 10000+.