Seems this bull run has further to go, with the S&P 500 breaking through the 1920 area, and the FTSE 100 gaining overnight. Gold also continues its fall, while average London house prices are now rising at £588 per day!
Ever think some things seem over amplified? We are nearing the top of the Bianca channels again, 10 day is 6887 and 20 day 6896 so I am still thinking we will see a stutter shortly, though it certainly looks like its gunning for the all time highs around 6930.
As mentioned in the Telegraph today, China has also been exploring direct purchases of bonds and other assets to support key sectors of the economy in case the slowdown deepens, according to a leading Chinese business publication. Despite that, news last night was that Chinese manufacturing expanded.
We will see this week if the ECB are announcing further stimulus and cutting the deposit rate.The market is also rising on expectation of both.
FTSE Outlook
We are now so close to the all time high and we haven't had that much of a dip since the one a few weeks ago. It's assumed that the FTSE 100 will probably try for the 6930 area. Just prior to that we have the top of the Bianca channels likely to get hit today, between 6887 and 6896, so a possible shorting area here, ON THE PROVISO that 6870 is broken.
Today's pivot is 6850 (nice round number too) so initial support is around this level, though for the bears to get interested it would need to fall below 6811 to reach 6780. Upside resistance levels apart from Bianca are 6870, 6909 and 6927.
Daily Raff Channels
Bianca Trends
Gold
Gold is on support at 1242 as I write this, a move below that likely to reach 1238 now, maybe as low as 1228. Its already breaking below that new daily channel that formed last week as you can see below so weakening still as indices continue their rise.
Resistance is 1277 today, a level the bulls will need to capture to push up to 1299 and invalidate the bearish potentials.
S&P
My 1919 short on the S&P 500 got stopped out at 1923 here as it looks like 1926 is going to be next today, possibly 1931 later this week where there is a PRT line on the daily chart. I did read 1944 mentioned and that is the top of the 20 day Raff channel as well so could be a level hat the bulls are aiming for - and would certainly stop out a few bears with a climb to that.
Support wise today is 1918 and a move below that would harm the chances of a push to the highs. The daily pivot is 1921.4, so it will be key if these 2 levels hold today.
DAX
Only 40 more to go for the 10000! Initial resistance for the DAX is 9971 then 9985, a break of which will lead to 10000 and possibly a bit further to trigger some stops - 10040 maybe? I'd definitely look to short at 10035.