FTSE eyes 6600
The downtrend remains in place, and the overnight rally here does not yet imperil the bearish case. Either the 50-hour EMA at 6560 and/or the downtrend line running from 21 June (c. 6566) should provide resistance.
As before, any bearish crossover in hourly stochastics will provide the signal for fresh intraday selling. The downside target still remains the month lows below 6500.
We would need to see a recovery back above the 6600 level for the index to even consider the possibility that the pullback from 6800 has come to an end.