FTSE 100 falls 1% during the session on Wednesday

The FTSE 100 has pulled back over 1% during the session on Wednesday, showing signs of exhaustion as the market has been a bit overdone. However, I do believe in the buying opportunity will present itself every time we pull back, with the 7700-level underneath being the “floor.” I think that the market will continue to find plenty of reasons to go higher, not the least of which will be the British pound falling. I think that the idea of the British pound falling making British exports cheaper make sense, and I believe that the overall attitude of the market has not changed though, even though the session on Wednesday was particularly bad.

When you zoom out, you can see that we are clearly still in and uptrend, and the pullback was nothing but a blip on the radar. I believe that the 7700 level will bring a lot of buyers, but ultimately the bottom of the uptrend is probably closer to the 7500 level. Longer-term, I believe that the market is going to go looking towards the 8000 level above, which is psychologically important, obviously. Clearing the 8000 level is a strong sign as well, but I believe that this is uptrend that should continue through most of the summer time, as the US dollar will continue to put downward pressure on the British pound in and of itself.

FTSE 100 Video 24.05.18