FTSE100 – Daily Money flow indicator suggests caution

TVC:UKX   UK 100 Index
The daily money flow indicator suggests bulls need to observe caution. If we look back into history, each time the indicator neared 67-70 levels, there was a notable pullback in the index.

The view gains further credence when we consider the fact that FTSE100 is hovering around key resistance zone of 6850-6900.

If indeed the historical pattern unfold (which seems likely) the first stop could be at 6775 followed by 6600.