Technical analysis for 7th January 2026
FTSE100 Bias
- BIAS: STRONG BULLISH (ACCEPTANCE ABOVE 10,000)
- Holding above the 10,000 psychological level → acceptance, not rejection.
- Trend firmly up within a rising daily channel.
- Intraday action shows bullish consolidation/flag above the daily pivot.
- Pullbacks are shallow and bought.
- FTSE stance today: Buy dips / continuation.
- First caution: sustained move back below 9,980–10,000.
S&P500 Bias
- BIAS: STRONG BULLISH (GLOBAL DRIVER)
- Firmly above daily EMA20 and EMA50.
- Early-January flow typically supports trend continuation.
- Volatility remains controlled → grind higher behaviour.
- No confirmed distribution or topping structure.
- S&P stance today: Primary risk-on anchor.
DAX40 Bias
- BIAS: BULLISH CONTINUATION
- Clear higher highs / higher lows remain intact.
- Above key daily moving averages.
- Benefits from both FTSE strength and US risk-on tone.
- Any weakness so far is corrective, not impulsive.
- DAX40 stance today: Buy dips; trend-following longs favoured.
FTSE100 Roadmap
- Above 10,050:
- Buy pullbacks only
- Above 10,170:
- Look for trend continuation toward 10,230+
- Below 10,050:
- Momentum pauses → rotate toward 10,000–9,980
Well the bulls certainly put the brakes on the bear Tuesday with a rise to the 10150 level. Dont forget that we are still looking at a possible 10230 test now the 10070 level has broken.... Today looks like we may well see a bit more caution, and in fact the DAX40 short did work well yesterday, so while we are still generally in buy the dips mode, it will pay to be a bit more cautious. Articles starting to appear in the MSM as well about now being the time to buy shares which is usually the harbinger of doom!
Initially today on the FTSE100 we have support at the daily pivot at the 10097 level, and if the bears were to break below this then we may well see a slide down to the 10035 area where we have the key fib level along with S1 and the 30m 200ema. If we were to test this then I would like to see this hold for another rise back towards 10100+. The 10030 level is also the green 2h coral line which may well hold as support.
On the bullish side, and if the bulls can manage to defend that pivot and the 10100 round number, then a rise towards the 101170 level would likely play out. This looks like it will be pretty strong resistance as we have R1 and the key fib here, along with the top of both the daily Raff channels. As such this may well cap proceedings today, though if we break higher then continue to look for the 10230 level, which is now also R2 for today.
We have ADP data out at 1500 in the US, along with the ISM Services PMI so we may well see some movement on the S&P then. That is also looking like we may well see a rise and dip play out with a test of the 6965 resistance level. The bulls will of course be trying for the 7000 level but may well struggle to test that today.... we shall see. We still have Trump talking about Greenland, which may lead to some profit taking later. Certainly been a strong start to the year so far which may run a bit further before we see some money being taken off the table.
The DAX40 looks like a rise and dip also with a potential test of the 25100 area before a drop back. With the key fib here, and just above R2 and the 10d Raff channel top we could see the bears appear here. The daily pivot at 24928 is initial support with 24775 below that.
So a bit of a contrarian view at the moment - still the potential for more upside but also starting to be a bit more cautious as well - never goes up in a straight line!
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for trading - MT4/5, web and mobile
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Join my Membership for Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX40, Gold and the S&P500, including the trades that I am looking to take myself, then please join my active members community.
Keep up to date with new website posts, free sign up below
