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This week saw the FTSE pull back to 7500, from last week’s revisit of 7600, although its uptrend remains in tact. As I mentioned last week, last May’s 7900 record highs are still in sight.
Investors remain hopeful about cheap money for longer. Last week it was all about a Fed rate cut and.or more ECB policy easing. Next week it could be all about China GDP and its read-across for stimulus form Beijing.
Bulls need a break back above 7540 to rekindle the uptrend towards 7650. They also need 7500 to hold up as support.
Bears, would surely be happy to see 7500 breached, for the chance of a more downside towards intersecting support at 7435.
Our watch levels: Bullish 7540, Bearish 7490
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