Bullish factors
Bullish e-Yield Sentiment Indicator (ESI)
Declining bond yields
Earnings season
Bullish technical pattern
Bearish factors
Extended Bull market
S&P 500 well above 200-day moving average
First degree extreme in bullish sentiment
Fed tapering asset purchases
Slowdown in emerging markets
Put/Call Ratio 10 day average at an extreme
Margin debt at record high
Percentage of bearish advisor at record low
Our view
There is nothing surprising in the current move down, it's a second wave and second waves can retrace 100% of the first wave. The first wave started from 6679, so in theory the second wave could go down to a maximum of 6679. This is a maximum retracement, in general the retracement is more likely to end between the 38.2% and 78.6% retracement of the first wave. I would say the most obvious support is (subscribers only) from where the FTSE 100 should rally.
Alternatively join Thierry's FTSE trading service to find out support/resistance levels
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