- FTSE 100 initially did pull back just a bit during the trading session here on Monday, only to turn around and launch higher.
- Ultimately, I think this is a market that I think you need to be very cautious, but you also have to recognize that short-term pullbacks are thought of as buying opportunities.
- I really don't have any interest in trying to short this market.
The 8,900 level is an area that I think a lot of people would be looking at as a potential support level. The area previously had been major resistance. If we were to break down below there, then we have the 50 day EMA racing towards the 8,800 level.
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All things being equal, this is a market that I think short-term buyers come in and try to pick up value anytime it appears. But it's also worth noting that launching above the 9,000 level, I think this is a situation where we have a lot of buyers coming in and pushing much higher with this. I think the break of 9,000 could open up the possibility of a move all the way to the 9,250 level, as the FTSE 100 continues to see a lot of buying pressure, if we were to perhaps break down below the 50 day EMA, then things could change.
But right now, I just don't see that being the case. The market has been going from the lower left to the upper right for a while. And this is just a continuation of everything that we have seen. I like the idea of buying dips and taking advantage of value as it occurs because the FTSE 100 has been one of the better performers over the last few months. have no interest in shorting, at least not anytime soon.
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