While last week’s strong FTSE 100 sell-off is negative for sentiment, the pullback is signalled as being corrective and it has stalled from close to a 50% pullback to this year’s entire rally. Monday’s trading opened on a positive note, the market rallying by 70 Pts and ending a sequence of lower daily highs.
Although this is positive, the bounce may also be corrective. With no sign yet that demand is ending though, the outlook for Tuesday is to buy on the open and at 6670.0, with a stop loss at 6643.0, the window which remains open since last week’s close. Targets are to 6710.0, 6740.0 and 6787.5, last Tuesday’s top.