The FTSE 100 rallied during the trading session on Tuesday to reach towards the 6800 level. The 6800 level has offered some resistance in the past, so it is not a huge surprise that we have struggled to break above there during the trading session on Tuesday. I do think that it is only a matter of time before we do, so short-term pullbacks will continue to attract a certain amount of attention. There are plenty of support levels underneath that you should pay attention to, so it is simply a matter of trying to find value.
The 6725 level has offered both support and resistance, so if we can pull back to that area, I think there would be a certain amount of interest. I would like the idea of buying this pullback if it happens, on any type of short-term bounce. On the other hand, if we turn around and break above the highs for the trading session on Tuesday, that could have this market looking towards the 6900 level, which was the most recent high. I believe that we will not only get there, but I think we will also go towards the 7000 level. Do not get me wrong; I do not think that it is going to be easy to get there, but clearly that is an area that a lot of the markets participants are aiming towards.
If we were to break down from here, then the 50-day EMA - which is currently approaching the 6600 level - should be a bit of a “floor in the market”, so it would be only a matter of time before buyers would show up there as well. This is a “buy only” type of market at this point, just like most of the stock indices around the world right now. We are a little less bubbly over here then we are in the United States, and you have to pay attention to the idea of the UK economy opening up again, which should continue to drive earnings and drive the marketplace higher. I think it is probably going to be very noisy, but I do like the idea of looking for value.
