FTSE 100 Index Forecast August 24, 2012, Technical Analysis

The FTSE Index fell hard on Thursday as the markets took a break from the recent bullishness. The Chinese economic numbers are getting softer, and as a result a lot of riskier assets such as stocks and commodities as well as risk related currencies are starting to get a little bit of a headwind.

The candle for the Thursday session was fairly long, definitely read it, and close to the very lows. However, we do see support down at the 5700 level. In fact, we think of this as a pullback that needed to happen. We would become much more interested in buying London stocks once the 5700 level is tested, and some type of supportive candle forms. As far as selling is concerned, we’re still a long way away from being in that camp.