Rise dip rise today with US inflation. 7315 7360 resistance

The FTSE 100 closed Tuesday 0.12pc higher at 7,282.52, while the FTSE 250 midcap index ended up 0.62pc at 18,140.09.

 The bulls are definitely fighting back a bit now, and a move through the 7325 area today will likely see a rise towards the 7360 daily resistance level. That is also just below the 7375 R3 level. That may well tally with the S&P500 rising to its 4461 resistance level and then dropping off a bit to retest the previous break out area at 4430 and where we have the daily pivot for today. 

Initially today then a rise to test the 200ema and R1 level, and possibly the 7327 key fib, before dropping back to test the daily pivot at 7277 looks likely to start with. 

The 2h chart remains bullish and has the 7210 area locked in as support, coincidentally just above the 7206 daily support level. Should see a drop down to this level then a long here is still worth a go.

Today's big news is of course the US inflation date, which is largely forecasted to show a drop from last month. That's out at 1330 so expect some volatility then. We may well see some buy the rumour, sell the news kicking in today. A weak Wednesday and then some strength Thursday and Friday once again. 

Below the 7277 daily pivot then the 7210 area is the main likely next area, though we have 7257 as S1 and 7218 as S2 prior to that. Both the Raff channels are now heading down as well following the drop off the 7600 area.

Should the bulls break the 7330 are then I would expect to see that 7360 level, and then above that a retest of the 7460 25ema on the daily.  It's quite possibly that the worm has turned on the S&P500 now and the bulls are gaining the upper hand again. Would kick start that July seasonality bullishness as well! The climb from 4380 is certainly going well! 4460 is the recent high and the level that we dropped off from, so the key level that the bulls will need to break. We may well see a retrace off this level again. 

So, rise dip rise I am thinking and watch for the news at 1330. 

Good luck today.