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FTSE eyes 6741
Having taken out Monday’s highs, the index now looks a lot healthier. It still has to close the gap between 28 and 29 June, and this would combine nicely with a move back above the 200-day SMA (6741). This would then set the index up nicely for a test of the late-June highs around 6875. With Greece still to be officially fixed we may see some hesitancy today, combined with the usual end-of-week skittishness, so a pullback back below 6600 cannot be ruled out, perhaps to a rising hourly trendline around 6590. With the dollar weakening and key macro fears receding, the current period looks more auspicious for equities than it has done for a while.