The US government shutdown has entered its third day today as the Senate fails to end the stalemate. The disruption intensifies efforts by Republicans and Democrats to blame one another for the deadlock and may harden the determination of lawmakers to gain leverage from the moment.
In other news this week we have further earnings and also have the Davos summit, so we may hear some news out of that this week. Markets might just tread water a bit while the talking happens.
Last week the FTSE dipped down to the the 7683 support level, but bounced well. The bullish trend therefore remains in tact and there is currently 2 hour support at 7700. Last week's lower support of 7640 wasn't tested and remains the line in the sand as a break if this changes the picture short term. Below the 7700 level the daily chart shows support at 7670, and again that is a decent looking swing long entry area.
Fib resistance is at 7776 with R2 at 7778 so watching this area for a reaction today. A break of this will likely test 7793 again, with 7813 above that (R3).