The FTSE 100 Index gained wildly during the Thursday session after the ECB announced that it was going to buy virtually unlimited amounts of bonds in the European Union in order to help some countries stabilize interest rates. This of course brought a lot of bullish attitude into the markets, but it should be noted that the market stopped right at the 5777 level which is right around the beginning of a resistance area.
While we don’t a necessarily think that this area is anything special, it is probably more likely that traders stop at this point simply because of the employment numbers coming out of the United States later today. Because of that economic announcement, the market may have a little bit of difficulty gaining during the session. Because of the massive importance of employment numbers in the United States, we think that British stocks are probably better off left alone until we see before reaction to the employment numbers, both in the United Kingdom and abroad. Needless to say though, this market does look very bullish and a move above 5800 would more than likely send us looking for the 6000 level. As for selling, we don’t see a case for it at this moment in time.