FTSE 100 – Where will it go next & how will the Election affect it?

So the FTSE 100 finally breached the almost mystical 7,000 point mark last week before returning below 7,000 this week. In fact, at its highest closing point it reached 7037.67 on 23rd March 2015. But what next for the FTSE 100? Will we see it go higher in the future or are there significant headwinds that could spark a longterm correction?

FTSE 7,000 - what triggered the rally

In my article from over a month ago, titled Stock markets at all-time highs, where next & should you buy?, I predicted that:

"if the FTSE 100 can break 6,930 the diagonal line of support could suggest that we’ll hit 7,000 pretty quickly".

Well that's exactly what happened albeit after a small sell-off. As I pointed out in last week's weekly note, a combination of factors came together to help push the index over the 7,000 line.