June ended on a fairly bearish tone as the FTSE 100 fell from the 7370 level to dip just below 7300 before closing around there. After the bell there was a bit of buying to try and pull away from the 7300, with the bulls managing a few points.
Things still look bearish though with the moving averages on the daily chart widening now - after the resistance test of 7467 a few days ago. The picture now looks like a decline to 7255 is on though there is still that support at 7279 for the moment. Should the 7255 level break, then 7150 is the next obvious level - then it is the "Theresa low" at 7100 - where the FTSE fell to when the PM announced the snap election. I am not sure we will see that low as the 200ema on the daily is at 7180 which is likely to support any decline.
News flow over the weekend was fairly quiet, with the main story being about ending austerity - but where does all the money come from!
Looking ahead for today, the highlights include eurozone, UK and US MFG PMIs, US ISM and construction spending.
The direction is not overly clear for today but as its bull Monday, and the start of the new month, I am thinking that we will get some sort of a rise, at least initially. The levels that I am watching for resistance are 7388 and 7405 for today, while support is at 7279 and 7255. These 4 levels all looks pretty key and if seen are worth trading off, with long off support, or short of resistances.
