For today I am expecting the bulls to hold above the 7410 level and we see a test of the 7474 area. We have the top of the 20 day Raff channel just above this at 7484 as well, so if the bulls do rise to this area then we may well see a stutter around here. We also have the top of the Bianca channels fairly close by at 7453 for the 20day and 7469 for the 10day. There is only so long that US and Asian markets will keep making all time highs!
At 09:30 this morning we have retail sales data out in the UK, with the forecast to be a rise to 0.4%, versus -1.2% last month. Will it be that positive? Not so sure!
We also have the US jobs data out at 13:30 as well, and likely to provide more clues as to rate rises. Chances of a rate rise this year have dropped to 40% now. The fact that gold is rising suggests a hold on rates.
FTSE: Support wise, we have 7410 on the 2 hour chart looking fairly key and also the 7380 level, which was previous resistance and also support yesterday. The bears will still be keen to break this level as it opens up a run down towards 7300. For the moment though, things look bullish. That said, US fund managers are more underweight than they have ever been on US equities!
