FTSE sells off from 6123 yet direction remains unclear
The FTSE has sold off from 6123 resistance on Friday and brought with it a question mark over whether we will see another selloff come to fruition. The failure to create a new high this morning is a signal that this could be impending, yet I would need to see a close below 6050 to gain confidence that we going to trend lower once more.
A one or four-hour close below 6050 would lead me to believe we will see the FTSE fall back to 6000 and 5950. Otherwise, a move above 6123 would point towards another leg higher.
However, the key level to the upside is 6170, which if broken would make the medium-term picture less bearish and possibly restore some of the confidence that markets have lost of late.