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The FTSE 100 pulled back during the Thursday session in order to retest the support of weeks all taste upon Tuesday's hammer. The 5830 level looks to be the support level, and we do feel that this market has an upward bias nonetheless. However, we see a lot of resistance all the way up to the 6000 level, and as such are as comfortable buying this market without some type of significant pullback.
That pullback could reach as low as 5700, which we see as being very supportive. This area looks like a great launching pad if we get some type of pullback. Nonetheless, we think that British stocks will continue to perform, and this will be a "buy on the pullback" type of stock market. For the meantime however, we are sitting still as we think the low liquidity and the lack of fundamental drivers will make this a very range bound market.
We are buying pullbacks that show signs of support and of course a breakout above the 6000 level. It isn't until we break well below the 5700 level that we would consider going short the majority of the market.