FTSE 100 tries to rally during the week but fails

The FTSE 100 initially tried to rally during the week but found enough resistance above the turn around and form a massive shooting star. This of course is a negative sign, and I think it’s only a matter of time before we start pulling back as we had been far too overextended.
FTSE 100 weekly chart, May 28, 2018

The FTSE 100 initially tried to rally during the week but found enough resistance above the turn things back around and form a massive shooting star. That of course is a very negative sign, and I think that the market is ready to start falling again. I anticipate a move to at least 7500, and perhaps even lower than that. This is a market that has been overbought, so it makes sense that we get this pullback. I don’t necessarily think that it’s time to get in with both feet to the downside, I just think that the market has gotten far ahead of itself and it would make sense for return to lower levels. I think that if we break above the top of the shooting star, then the market would test the 8000 level, and clearing that level would send this market much higher.

I believe that the market continues to show bullish pressure longer-term, but every once in a while we need to pullback to offer value to get more people involved. Ultimately, this is a market that I think continues to find plenty of buyers, especially as the British pound has fallen drastically. The idea of cheap British exports should continue to be a main driver of this market to the upside and I think it’s only a matter time before that resumes. Short-term selling opportunities to present themselves though.

FTSE 100 Video 28.05.18

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