We ended September pretty strongly, with that bullish Friday as expected. Didn't even dip down to 7320 though, just straight out the blocks! Overnight we have popped above the 7400 level but dropped back to close the gap, but bodes well for yet another bull Monday. We are just testing the top of the Bianca channels at the 7380 levels if the bulls can break above this then we will likely see the 7450 area.
There is support today at 7350. Things are kicking off in Spain at the moment too which is a bit unsettling for the EU as the Catalonian referendum descends into violence.The preliminary results pave the way for the region's leader to declare independence in the coming days.
For today I am thinking that buying the dip (if we get one today!) is the best play, ideally around the 7350 level as we gave decent support here. If the bears break below this then the fib level support at 7305 is likely to be tested and the bulls are likely to defend this to build on the strength at the end of the September.
It's the start of the new month trading so we usually get a kick up initially as the new month money flows in. There is initial fib resistance at 7401 so we might stall a bit there, and we have the overnight high at 7405 as well. Above this then the Raff channels are both at 7415 though I am also expecting the bulls to be able to push on towards 7450 if they get some decent momentum. The S&P 500 has broken above the 2515 resistance level now and holding above 2500 whilst looking strong still, so we are more than likely to see further upside in the US as well.
The 2 hour chart looks positive for today, and is the one showing the 7350 support. I expect this to hold.
So, watching 7350 for support, 7415 and 7440 for resistance.