Good morning. Those bears who went to bed with hopes of a significant gap lower will be understandably annoyed as they check the futures wheel this morning. From sp-7..to +6pts, we're now due to open around sp'1358/60, this is not exactly a great start.
It seems the flip higher was due to better than expected UK manufacturing data, although this market would use almost any excuse for an overnight mini ramp.
As things are, its still 'minor' gains, so lets see if the bulls can keep the market green this morning. There is no econ-data due today. There is some possible news later today about what the German constitutional court will decide on the EU bailout. I'd really not hold out any hope that will be a 'bearish' factor.
Bears need to put a lid on this overnight nonsense quickly. The bear flag on the hourly charts would suggest we must not go above 1360. The crazy thing is that's just 14pts shy of the high a week ago. We've really seen no down move yet of ANY significance.
So....lets see if the early minor gains can be erased, and if we can still close red..for the fourth day running.
The crucial line in the sand remains sp'1330. Only a break/close in the 1320s can the bears start to get excited that a major down cycle is underway.
More across the day.