FTSE 100 index lacks momentum but looks bullish


The Footsie index was trading half a percent higher on Thursday, underperforming under EU/US indices, and it seems to be lacking upside momentum.

The index declined to the first support area near 5,550 GBP, and bulls jumped back into the market, and the dip appears to be bought. 

Sellers could be defending previous highs at around 5,795 GBP, and if not held, further rally toward the swing highs of 5,935 GBP could occur. However, the Footsie seems to be lacking some serious bullish momentum as other indices are long past their last week's highs. 

On the downside, if the bearish pressure reappears, the support of 5,550 GBP could be broken to the downside, with the next primary demand zone seen at around 5,350 GBP, where previous highs and lows are converged.

Central banks are flooding the markets with unlimited liquidity, which is uber bullish, but the underlying fundamental and economic situation is very bearish. Thus, we will see which driver will be more important - money printing or the real economic situation. 

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