FTSE 100 goes back and forth on Monday

The FTSE 100 continues to show strength over all, but we could get a bit of a pullback looking for value. I think there is plenty of support at the 7500 level, but if we do break down below there, the market probably then goes looking towards the 7440 level, an area that was previous resistance. Because of this, I think that the buyers could come back in around that area, perhaps sending this market the much higher levels. I think that the volatility continues, but it looks to me is that the FTSE 100 continues to find plenty of buyers underneath, perhaps because British stocks are a bit cheap in comparison to US stocks, so could be a simple function of allocating assets by larger funds.

I believe that the bottom of the uptrend is at the 7250 handle, and if we can stay above there it’s probably going to continue to offer a “buy the dips” scenario. I think the overall attitude of this market probably sends this market towards the 7600 level. Above there, the market should continue to go higher, but I think that the next major round number of course is the 7600 level, I think that the attitude of participants should continue to be the same, and therefore value hunters will continue to be attracted to this market on dips. I have no interest in shorting until we break down below the 7250 handle.

FTSE 100 Video 01.05.18