FTSE 100 rallies during the session on Wednesday as fears in Italy abate

The stock markets in major countries around the world are rallying during the trading session on Wednesday, and of course the United Kingdom would not be any different. This was based upon the idea that perhaps the Italians would not have to have a fresh round of elections, which take some of the uncertainty around Italy out of the markets. Ultimately, I don’t think that it matters so much, other than we had been offered a supreme buying opportunity in this marketplace and should continue to see buyers jump into this market as it had been so oversold and quite frankly for reasons that have nothing to do with the United Kingdom itself.

In a world that is highly interconnected, people sell first and ask questions later. Ultimately, I think that we will return to a bullish attitude, but I also recognize that we will probably have a significant amount of noise in this general vicinity. If we can continue to rally, my target would be the 8000 handle as it has been for some time, but I am aware that it is going to be very noisy and therefore I recommend that if you do get involved to the upside, you do so with small positions. To me, it looks as if the 7600 level is trying to offer a bit of a base as it had previously. I believe the bottom of the uptrend is at the 7500 level.

FTSE 100 Video 31.05.18