- The FTSE 100 went back and forth during the course of the trading session on Thursday as we continue to hang around the 8700 level.
- That being said, this is a market that is very noisy, and I do think you have to be cautious about getting aggressive.
- But what I do find interesting and perhaps even encouraging for the FTSE 100 is that during the day we saw the Bank of England hold still, but what's more important is they showed the vote count, and it was much more hawkish than people thought.
So, with that being the case, the fact that the FTSE 100 didn't go plunging out of the sky with its tight central bank shows that there is still a bias to the upside.
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Pullbacks in this Index
Short-term pullbacks at this point in time see plenty of support near the 8600 level as we have the 50-day EMA and again at the 8500 level. The market breaking higher from here does make quite a bit of sense, perhaps reaching the 8900 level, possibly the 9000 level.
Expect a lot of volatility and noise, but at the end of the day, when you zoom out, it's a bullish market and there's nothing on this chart that suggests anything different than that. I think you're buying the dips, and I think you're taking advantage of cheap contracts whenever you get the opportunity. The market doesn't change trends at the very least until we break down below the 200 day EMA, which is closer to the 8,333 level. As things stand, it looks very much like a buy on the dip scenario.
At this point, the FTSE 100 continues to be one of the better performing indices that I follow, despite the fact that the Bank of England isn’t helping it along. This to me speaks volumes, as it shows the overall bias clearly.
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