The FTSE 100 rallied again on Tuesday, as the markets are digesting, the employment numbers being worse than expected. As this could have the Bank of England could be forced to cut, stock traders are happy.
FTSE 100
This has people thinking that the Bank of England will start to cut rates quicker than originally thought and if that's going to be the case then stocks should do fairly well at least that's the theme that we have seen in equity markets around the world since 2008.
Short-term pullbacks offer buying opportunities with the 10,400-level offering support at this point though it looks very much like a market that is going to continue to break to the upside perhaps trying to get to the 10,750 level. This would be a longer-term move, but one that makes sense in this current environment.
Equity Trends and Support Levels
UK stocks continue to be a beneficiary of a British pound that is pulling back a bit but quite frankly with the inflationary numbers staying higher than originally thought the fact that the jobs market might be struggling a bit is actually welcome news to those trying to play equities.
The idea of traders shorting this market is something that I wouldn't really put into play until we get well below the 10,000 level.
Things might be noisy and choppy on the way up, but I anticipate that eventually we will continue to see more buy on the dip behavior and more momentum to the upside. This is a market that I believe will continue to outperform many of the other indices, as we have seen over the last few months. The one area that might be different and stronger: Asia. As things stand right now, London has been a reliable long and looks to continue to be.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.