Quadruple witching today with a possible rise towards 7105

The bulls are hanging in there and once again defended the dip on the S&P 500. There was a slight overshoot of the 4452 2h support level but 4442 held and we are nearly back at the key 4485 resistance level. The bulls will be keen to break this as that will see a rise towards the 4495 key fib, but also possibly above 4500. With the recent drops 4481 is the top of the 10 day Raff channel now too so they will be keen to break above this. If they do then it should pull the FTSE100 up with it, and the defence of the 7000 level will have been worth it.

The 7020 level once again held as support yesterday and the 2h chart remain bullish for the moment. However we have not yet tested the 25ema on the daily chart, which is bearish and has the 7095 level as resistance. With the top of the 10 day Raff channel just above this at the 7104, along with the key fib also, this area looks like it will see a bearish reaction. 

We also have option expiry (quadruple witching) this morning at 10:10 so expect some volatility then as the various futures contracts roll over. We may well see a spike up and then a retrace so bear that in mind.

If the bulls were to push past the 7116 daily resistance level then we may well see 7139 which is the R3 level, though that seems a big ask and is probably more dependant on the US bulls putting in a decent shift today. The crucial question is if we have now had the September wobble earlier this month with the 4440 level on the S&P being the low and the bulls can reuse control or if we see a further sell off down towards 6950 and 4400. Or lower!

For the bears on the FTSE100, they will be looking to break the 7050 level as we have a cluster of supports here, namely the daily pivot, 200ema 30m, and also the 30m coral. Should they do so then a drop down to the 7036 S1 level, and also more likely a retest of the 7010 level seen on Wednesday. This is just above the cam break out and also S2, as well as the round number of 7000, so the bulls would I imagine be keen to defend a drop to this area again. A break of 6985 gets things quite bearish though and we would more than likely see 6950 in fairly short order.

The media are continuing to whip up a storm with various headlines, such as blackouts, gas shortages, food shortages (chickens being the latest) etc so for some reason trying to stoke up a bit of fear. Not sure what the motive is for that at the moment, but maybe people are jaded by the virus headlines and they want to keep an element of fear running through the population. That should of course see stocks rally!!!!! 

Anyway, looking at a rise and dip to play out with a test finally of that 7100 resistance area. A level that we should see a reaction at!

Have a great weekend and don't forget opex at 10:10 this morning.