Thursday’s bearish signals FTSE have been confirmed with a strong near 100 Pt deterioration; a sell-off which has also turned weekly signals to negative. Although there is no sign yet that the pullback is ending, the UK has been outperforming, as is often the case in a broad sell-off and futures are trading close to 6612.0, a 50% pullback to the entire 2014 gains, a level which has the potential to attract buyers.
The market is also likely to open on a bullish gap open this morning, and although it is clearly counter-trend, the outlook for Friday is temporarily bullish above 6641.0, the 2 week low. Targets are to 6680.0, 6703.0, a 38% recovery to the losses posted since this week’s high and 6720.0, a deeper 50% correction.
