Equities bounce back as traders trim their bets of aggressive tightening by central banks. The FTSE 100 has tumbled to the base of a breakout rally in early January near 7490. This is a critical level to maintain the upward trajectory in the medium-term after the index gave up two months of gains. An oversold RSI on the daily chart may attract some bargain hunters in this demand zone and short-covering would drive the bid up. 7750 is the first obstacle to lift and only a close back above 7900 would turn sentiment around.
