Stops first and buyers second as FTSE 100 rebounds

Well, the FTSE 100 has now rebounded, but not before it managed to take out the previous interim low at 7,403. It seems some sellers emerged on the break there and below 7,400 too. That saw the index fall to a session low and new low on the week, at 7,387. However, it has now rebounded from there and lifted back above 7,435 as I write. So, in essence this smacks of stops being tripped first and buyers emerging afterwards. That is very much in keeping with trap door laden price action and similar to what we often see across many other markets. Increasingly these days that is what happens and smart robots and traders often go against the initial move and once that reverses, the rest of the crowd jump back in the other way and a more pronounced move in the opposite direction plays out. Look, I cannot always forecast price action, but I can at least try to explain it and its functionality.