FTSE sell-off could be on
The FTSE 100 fell sharply yesterday, following on from a week-long period of consolidation. This pullback comes at a time when the uptrend had been slowing and thus this move portrays last week as a period of exhaustion. The shallow rally overnight has since created a flag formation which points towards a high likeliness of further losses today.
With that in mind, there is a good chance that we have seen some form of top for this rally, with a retracement in the offing. As such, a closed candle below 6207 is the key for another move lower, with 6197 and 6179 the next key support levels. This seems highly likely, given the sharp pullback we have seen since the open. Interestingly, this takes us back into the three-week range of May.