FTSE 100 breaks out during the trading session on Monday

The FTSE 100 has pulled back slightly during the day on Monday, but then bounced enough to shoot this market above the 7800 level. The market looks likely to go much higher, and I think that pullbacks continue to offer value in what I think is one of the strongest stock markets in the world. Ultimately, this market probably goes to the 8000 level above, but is going to take a significant amount of momentum building up to shoot this market to the upside. I believe that the 7700-level underneath continues to be a bit of a “floor” in the market, and I think that there is no reason to think that we will break down below there. If we did, that of course would be a very negative sign, perhaps sending the market much lower.

I believe there are plenty of places where we could see buyers underneath, perhaps supporting and stabilizing this market seeking build up a larger position. It’s going to take a while to get to the 8000 handle, but I do think that we eventually get there. I believe that the market will ultimately look at these dips as buying opportunities and with the impulsivity that we have seen during the beginning part of the session, I think the market is showing that we are ready to go much higher. Look to the short-term charts to take advantage of little dips and add as we go along in the market moves in your favor. The market continues to be noisy, but most certainly favorable and positive as the buyers are in control.

FTSE 100 Video 22.05.18