FTSE 100 continues the bounce around during Friday session

The FTSE 100 continues to dance around the 7700 level, which of course is a large come around, psychologically significant number. On the weekly chart, we had formed far too much of an extended bullish run to continue going higher. I think that grinding sideways overall is necessary right now, so I think that short-term range bound trading strategy should be employed, perhaps using something akin to a stochastic oscillator as part of your situation.

Overall, I think that when we do dip, there should be plenty of buyers underneath, down to at least the 7600 level. If we were to break down below the 7500 level, the market could go much lower, perhaps unwinding towards the 7000 handle. At this point, I believe that the market will stagnate more than anything else, because we are paying attention to so many different things around the world that I think it’s all risk related. Ironically, something along the lines of a conversation between the Americans and North Koreans could move this market. It simply whether we are buying assets or selling them. Obviously, the FTSE 100 is a bit of a risk asset, so keep that in mind. The political risk coming out of Italy also has a bit of a knock on effect as well, so keep that in mind. It’ll be choppy, but I think that those who are short-term minded may love this market for the next several days.

FTSE 100 Video 11.06.18