FTSE rallying back towards 6000
The FTSE saw a strong move higher yesterday, followed by a sharp decline at the release of the FOMC decision and statement. A typical ‘buy the rumour, sell the fact’ move. This morning is seeing a calmer climb higher, as the index attempts to regain the ground made up yesterday.
Crucially, we have seen a gradual stepped move higher today and this looks likely to continue. Much like the retracement lower this morning, it would not be surprising to see a gradual drift lower at some point, followed by a spike through the peak of this current move higher.
Thus a bullish short-term view is in play unless we see an hourly close below 5933. Resistance levels of note are 6000, 6024 and 6070. A close below 5933 would bring 5916, 5902 and 5878 support levels into play.