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FTSE 100 drops back below 7450
The FTSE 100 rally has faltered and dropped back below the 50-day simple moving average (SMA) at 7455. For the time being, this may still be a possible buying opportunity, but the dip will need to avoid moving back below the 200-day SMA (7404).
The loss of 7450 is a bearish sign, and may well imply that we have seen a lower high following on from November’s peak. However, pre-Christmas strength should start to kick in from today, so there is still the potential for a bounce, with a move above 7500 clearing the way to 7600.