FTSE 100 hits record highs
New record highs for the FTSE this morning confirm the rally is back on. Bulls now have the difficult task of discerning whether we will get a pullback or move higher from here. First line support would be found around 7394, the previous high, but buyers should not be unduly disturbed if a bigger pullback takes us back to 7360 or 7340 – areas where buyers stepped in this week.
It would take a move below the 50-day simple moving average (SMA) at 7265 to even suggest the rally has turned. Any dip above this level should be welcomed as another buying opportunity.