- The FTSE 100 pulls back after failing near 9,800, but the broader uptrend remains intact.
- The move appears to be a consolidation after strong gains, with rate cuts and technical support likely attracting buyers.
The FTSE 100 initially tried to rally during the trading session on Friday, but we saw a lot of hesitation just underneath the 9,800 level, and then the market just dove. At this point, it looks a lot like a market that is trying to find some type of consolidation and is trying to think about whether or not we are going sideways or if we are going to sort out whether or not this is a market that has to make bigger decisions.
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At this point, I do not think that we have any real concerns, and I do think that this is simply a market that is trying to digest some of its gains for the year. Like many other indices around the world, the FTSE 100 had been essentially on autopilot for a while.
Key Support and Upside Levels
As we go sideways towards the end of the year, I think you have a lot of questions to be asked as to whether or not there is another reason to go higher. The Bank of England is likely to cut rates soon, and that might be a bit of an accelerant for the market, with the 50-day EMA sitting just below and the 9,500 level offering support. I think that there will be some interest in buying this market.
And if we can break above that 9,800 level, it does open up the possibility of an attack on the 10,000 level. Ultimately, this is a market that I think will have a lot of volatility and choppiness, but at the end of the day, we are still very much in an uptrend, and I do not think that changes anytime soon.
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