The FTSE 100 is selling off this morning, following yet another almighty leg higher yesterday. The news that we will see another bout of easing from the BoE was certainly greeted with glee yesterday, yet we are seeing a retracement of that big move this morning.
The key level of support to watch out for is 6489, which represents the October 2015 high. Ultimately, we have seen a hugely overextended rally of late and a pullback was always likely soon enough. Given the trend of selling off at month start and rallying at month end, there is a chance we could start pulling back.
However, we have not seen the sign that a wider pullback is about to occur yet and as such we remain within a short-term uptrend.
Ultimately the 6489 support level remains the first major hurdle that would need to be overcome and as such, the reaction to that level is crucial. A break below would look towards 6447 as the next support level. A bounce would look towards 6600.