FTSE100 - running on or out of steam?

As we start a new week it will be interesting to see if the markets can maintain the upward momentum of last week as we go in to December. I've added the momentum indicator to this chart which suggests that the current bounce is somewhat weak. If we are going to see a December rally that leads up to a Santa rally then the markets will probably need to find some good news from somewhere. An early US fiscal cliff deal will probably seal it, but right now the current move looks weak with price hanging around a faltering 50dma. If there is any conviction in last week's move then any pullback needs to be a small one, perhaps not much lower than 5700. Anything below 5650 could indicate a bigger downward trend in place.

FTSE100