Yesterday’s forecast to sell FTSE 100 on the rally or through Thursday’s low trade was confirmed, the market posting a 2nd strong down-day in a row and a loss of 120 Pts, the 2nd worst 2 day performance so far this year.
While there is no sign that the deterioration is ending, the pullback is probably corrective and it has stalled exactly at 6666.0, a 50% correction to the Apr-May gains. There have been modest gains into the close, intraday sentiment is also oversold and signals are pointing to a temporary recovery this morning.
This is clearly counter-trend to the last 2 day sell-off, so with this in mind it is a cautious trade, buying modestly on the open and then at 6671.0, with a stop loss at 6653.0, June’s base. Targets are to 6710.0, 6730.0 and then to probably no further than to 6787.7, yesterday’s high.
