- The FTSE 100 fell during the trading session on Friday, as the overstretched condition in the market has finally caught up with it.
- At this point, the market is currently hanging around the 8500 level, an area that previously had been resistant to price action.
- Now that we have pulled back to this area, it suggests that a little bit of “market memory” could come into the picture, and I think that buyers will more likely than not do what they can to pick up “cheap contracts” at this juncture.
For what it is worth, I think there is a significant amount of support that extends all the way down to the 8400 level, which was an area of previous resistance as well. The candlestick is rather grim looking, but when you look at it through the prism of the last couple of weeks, it ends up being nothing more than a “blip on the radar.” Because of this, I think it’s worth paying close attention to how we behave on any pullback, and if we get some type of bounce, I suspect that it could offer a bit of value in the FTSE 100.
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Technical Analysis
The technical analysis for this index is obviously very bullish, and it has been for some time. The massive move that we have seen over the last week and a half or so had to be digested, and I think that’s all we are doing right now. Ultimately, I am bullish on this market, and I will be looking for an opportunity to get long yet again, as not only does the FTSE 100 look very bullish, but most indices that I follow do as well. I think at this point in time, the markets are just simply trying to get ahead of what people believe the next round of central bank e-zine will accomplish.
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