Well, it looks like we are on track for a bull Monday yet again, with a strong showing from the futures prices and a move above 7400. As mentioned above the bulls will need to break the 7440/7455 area to push higher, and we have a bit of a gap at 7380 which may well fill. There is also pretty decent support at this 7380 area on the 30 minute chart to start with today, so buying the dip looks like the most sensible play. The markets have been buoyed up by Hurricane Irma not smashing Florida as badly as feared and also rate rises look to be on the back burner.
If the bulls can break the 7440 to 7455 area then we should be on for a rise to 7500 and maybe a bit higher though the top of the Raff channels are both at 7480 so again, another hurdle to jump here for the bulls. I have put a short here on the trade plan as when they are close together they usually represent a decent level.
Generally today I am feeling bullish and thinking that we will see a bull Monday. However, if the bears take the price below the 7373 pivot area then that changes the picture a bit and the bulls will be on the defensive - needing to hold the 7350 level. A break of this is likely to see 7300. For the moment it all looks bullish though.
