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Christopher Lewis
FTSE 100 daily chart, February 22, 2018

The FTSE 100 initially rallied on Wednesday, breaking towards the 7280 level. We did pull back from there though, and it now looks as if we are trying to find support near the 7250 handle. Longer-term, I do believe in the FTSE 100 and think that it will go much higher. I also recognize that there is a lot of noise underneath, that should continue to lift this market. Ultimately, I think that the market goes looking towards the 7400 level above, which is a major round number. Overall, I believe that this market should continue to attract attention, as a way to play the historically weak British pound.

The FTSE 100 is a bit unique in the sense that we have the negotiations between the European Union and the United Kingdom that can cause noise in this market, but longer-term I do think that the uptrend should continue. I look at the 7000 level below as the “floor” in the uptrend, and if we can stay above there, I have no interest in shorting this market as I have a longer-term target of 7500 initially, followed by 8000 by the end of the year. I think global stocks continue to rally based upon relatively loose monetary policy, even though some central banks around the world are starting to attempt to step away from quantitative easing. The question is whether they can, and if they don’t, that will only send stock markets even higher. I believe that a “on the dips” strategy should continue to be employed in the FTSE 100.

FTSE 100 Video 22.02.18

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