The FTSE 100 as you can see has exploded to the upside yet again during the week, as we have bounced miraculously from the 6900 level with a significant amount of buying pressure. The Bank of England looks less likely to raise interest rates, at least as quickly as once thought, so that of course has pushed this pair higher as lower interest rates have money looking for dividend stocks and the like to make some type of money. I think if we can clear above the 7800 level, the market is likely to go to the 8000 handle above which is the next psychological barrier.
If we pull back from here, I think that 7500 level will be support, followed by the 7250 level. At this point, it’s almost impossible to short this market, because it is shown so much in the way of buying pressure. I think that pullbacks will be looked at as value, and we should continue to be very bullish in general. That being said, we are a bit overdone, so I think that we may need to pull back to build up enough value to start going long again. I believe that the market will continue to see upward pressure on these pullbacks though, because quite frankly after this type of move it’s obvious that the buyers are in control. I anticipate that a lot of people will have missed this move, so the be more than willing to jump in when we get the opportunity.