
Once again the FTSE failed to break above 6882, yesterday's high was 6873 and a pull back is now underway. The situation in Iraq prompted investors to take money off the table, I am not sure this is the reason why the market is going down. The FTSE is going down because the pattern is a fourth wave and the S&P has gone up too far too fast. At some point markets will correct and this is where we are now.
One thing is clear, the FTSE will struggle to move higher in the next few months, the UK index is weak relative to the S&P and the FTSE 250 is now lagging the FTSE 100.
FTSE 100 |
Today |
Next few days |
Next few weeks |
Trend |
Down |
Down |
Down |
Action |
Sell |
Sell |
Sell |
Trend reversal |
50% |
50% |
50% |
|
Key Reversal Levels |
FTSE 100 cash |
above 6875 |
above 6879 |
above 6950 |
FTSE 100 Future |
above 6875 |
above 6879 |
above 6950 |
|
Trade Setups |
The trend is likely to reverse when the trend reversal is 75%. A breach of a key reversal level implies a neutral position.
Research provided by e-Yield