Strong overnight rally suggests the FTSE could move back up, as far as the 6000 level by close of play me thinks. With the FTSE trending up as it is, I’ll be looking to trade off pullbacks to any key support and resistance levels.

The FTSE 100 index managed a sharp recovery during the afternoon session. I traded off a few key support and resistance levels and managed to finish up for the day.

The FTSE sold off overnight so expecting further downside pressure and a possible re-test of yesterday’s lows. I’ve re-drawn the downward channel on the hourly and I think the FTSE will retrace to the bottom trendline by the end of the week.

More downside for equities across the globe which saw the FTSE falling to the  5600 level this afternoon before a slight re-bounce.