Resistance - 6100, 6155, 6180
Upbeat UK data did little to help FTSE avoid/reverse losses as markets are focused on the possibility of Fed rate hike in June.
- A break below 6072 (daily 100-SMA and 38.2% of Feb low - Apr high) would expose head and shoulder neckline level around 6050.
- A day end closing below 6050 could open doors for a drop to 50% Fibo at 5963 levels, given the daily is still away from oversold territory.
This will kill U.S. consumer recovery and IMHO mean they will have to reverse this move.
The UK on the other hand looks like it is getting the kind of recovery it needs i.e. a spending consumer based recover NOT U.S. based on the price of oil which you cant control and Health costs enforced by law of govt and increase in wages/overtime rates again enforced by govt. These factors are not data, but are govt based policies.