Support 6832, 6777, 6705 Resistance 6890, 6900, 6935, 6984

Good morning. Well I was expecting a rise from the off yesterday then a bit of a dip, which never really came! Seems that the markets weren’t too worried about the Greece election instead choosing to remain buoyed by the QE announced last week. While the Eurozone was very bullish, the S&P less so, rising, but not reaching last weeks highs. Back to the FTSE and the daily channels are now firmly upwards, with the top of the 20 day at 6935 – based on yesterdays performance almost achievable today! With a bullish trend on most timeframes, looks like this morning is buy the dips (pivot at 6832 being a good spot).

Asia Overnight from Bloomberg
Asian stocks rose, poised for a two-month high, as a weaker yen buoyed Japanese shares amid optimism the actions of Greece’s new government won’t force the nation to leave the euro currency bloc.

The MSCI Asia Pacific Index (MXAP) advanced 0.4 percent to 141.24 as of 9:03 a.m. in Tokyo. European finance ministers have signaled willingness to work with Greek Prime Minister-elect Alexis Tsipras, as long as the leader of the victorious Syriza Party drops his demand for a debt writedown. At a meeting in Brussels on Monday, ministers agreed quickly to work with the new government to help keep Greece in the euro, Dutch Finance Minister Jeroen Dijsselbloem said.

“The new government, its various investors/creditors and the European Central Bank will work together to avoid disaster,” Scott Schuberg, chief executive officer at Rivkin Securities in Sydney, wrote in an e-mail. “Greece has just elected a party that will commit to tax cuts and more public spending. It’s going to need outside investors. To prove itself as economically hostile toward foreign investors would send its economy back to the Stone Age.”

Japan’s Topix index climbed 0.8 percent as the yen extended yesterday’s 0.6 percent slide against the greenback. South Korea’s Kospi index added 0.5 percent. New Zealand’s NZX 50 Index rose 0.4 percent. Australia’s S&P/ASX 200 Index increased 0.3 percent as trading resumed following yesterday’s holiday. Markets in China and Hong Kong have yet to open.

China’s stocks rose for a fifth day yesterday, sending the benchmark Shanghai Composite Index to a five-year high, as technology companies advanced on speculation they will benefit from increased government spending on national defense. Data on the nation’s industrial profits is due today.

Futures on the Standard & Poor’s 500 Index were little changed. The U.S. equity benchmark added 0.3 percent yesterday as gains in energy companies outweighed a drop in technology shares. [Ref]

FTSE Outlook

Resistance is at 6890 initially today, with 6901 above that. If the bears have a go from there then I can see us dipping down to the pivot which is at 6832 before a bounce back to 6900, and possibly more – am thinking he top of the 20 day Bianca at 6935 here. That 6835 area is also the bottom of a rising 30 minute channel so appears to be a pretty good level. Time will tell of course! The 30min EMAs are still bullish, as our the 10min SMAs, despite spending the overnight session level pegging each other. I have plotted an initial rise to that 6890 area, a rise I feel about 50/50 on, as it has dropped from that level yesterday, so we may drop down to the pivot from the off. There isn’t any particularly negative news overnight for it to be overly bearish though. New York is about to be blanketed in snow, which last time slowed things down a little as the city infrastructure slowed too. The S&P daily chart has just gone to bull, thought the S&P is on resistance here at 2059, so could drag the FTSE down.