FTSE 100 has a bullish week

The FTSE 100 broke higher during the week, clearing the 7500 level handily. Beyond that, the most important thing I think is that the GBP/USD pair continues to fall, and that makes British exports very cheap. We see a continuation over the past week of bullish pressure that we have seen for more than a month now, but at this point I suggest that we are probably a bit too overextended, meaning that we should get some type a pullback and buying opportunity. I would look at that as value waiting to offer itself, so I don’t have any interest from a longer-term standpoint of selling this market. I think that it’s a matter of buying dips and I look at the 7250 level as offering significant support. The alternate scenario of course is that we break above the top of the candle for the week, and that should send this market looking towards the 7800 level above, which was the recent high.

I believe that the market will course continue to follow the currency markets, and the currency markets favor cheap British exports from what I can see. I think that my continue to be the case for the summer as well, so I like the idea of buying this market and holding on for the longer-term move. In fact, I believe that there is a hard “floor” in the uptrend closer to the 7000 handle. If we were to break down below there, that would change everything of course.

FTSE 100 Video 07.05.18