The FTSE closed up on the last trading day of 2016 and recorded a new all-time high. I always say that it’s not a good idea to short the index in December, unless we are in a bear market. The bear market has been delayed, and it looks like there will be more upside before the bull market ends.
Last month however, the Santa Claus rally was unusual, the FTSE was very strong relative to the S&P. As noted the FTSE is at a new all-time high but the S&P is more than one percent below its all-time high. This morning I wrote "the rally will probably extend because the S&P is in a fifth wave up and is expected to make a new all-time high". Well I predicted the rally to 7200 last week, see Download FTSE Short Term Forecast 161230
Now I think the FTSE rally has further to go, there is more upside before we go down to 6900. So I have a new short term forecast. I think 2017 will be an excellent year to short the FTSE 100. To receive regular analysis and trading signals on the FTSE 100 subscribe to the FTSE 100 short term forecast