A few days back we said: “Dips are being bought, the bulls are in charge, and we’re not going to be caught batting against such a solid trend. Oh no!”

The market is in a rampant mood now, and put on stellar gains yesterday, trading up to then through my 1340 target (we’ve been talking about this as a target all year!).

We busted through the channel top line, RSI is overbought (the highest reading since 2005 in fact), and everything looks like it’s getting a little bit carried away. We are aware of this, and aware that sometimes this is the sort of thing that happens at a top. But that doesn’t mean we’re “calling” a top, because we can still see further upside in these sort of conditions.

If we break below 1328.2 things could start to unravel pretty quickly as I think there is now a fair bit of “speculative froth” appearing on the surface now.

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Below are Support (S1 to S7) and Resistance (R1 to R7) levels. On our daily reports we also include a chart, “Automated” levels including Pivot Points, Market Profile levels and popular Moving Averages, as well as our unique “SkewBar”, giving you an instant snapshort of the current short term trend.

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R7  – 1425

R6  – 1410

R5  – 1404

R4  – 1400

R3  – 1379.4

R2  – 1373.4

R1  – 1350

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S1  – 1345.7

S2  – 1342.9

S3  – 1333.8

S4  – 1328.2

S5  – 1324.8

S6  – 1319.8

S7  – 1313.3