- The FTSE 100 initially pulled back just a bit during the trading session here on Wednesday but has turned around to show a bit of positiveness in a market that I think continues its slow grind higher.
- The key word is going to be grind, but European indices overall have done fairly well, and while I realize that the United Kingdom is not part of the European Union, there is a little bit of a knock on effect.
- The central bank in England has been steadfast in its interest rate policy, suggesting that there is plenty of growth in England.
That's something that needs to be paid close attention to. The 50 day EMA currently sits at the 8,600 level and is rising. So, I think that it would be your first support level after that is 8,500.
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On a higher move, the market is likely to go looking at the 9,000 level given enough time. This is a very technically driven market. As you can see over the longer term, it seems like every 500 points or so, you see a major turnaround. I do think we will eventually try to test that 9,000 level. And while I am bullish of the FTSE 100 in general, I recognize there are some other indices, especially on the continent, that probably outperform. This would be especially true in the case of the DAX in Germany. Nonetheless, you definitely will get more performance out of London than you will New York at the moment, and I suspect that could very well end up being the case going forward, at least as things stand right now.
The Federal Reserve has an interest rate decision late during the session on Wednesday, and that could change some of the outlook for the U.S. indices. Maybe money will come back to America. But right now, I think we've got some time before that comes to fruition. And if that's going to be the case, then I think the FTSE 100 makes a lot of sense to go higher.
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