FTSE FOR FRIDAY (FTSE:UKX)
The market has experienced a week reminiscent of the weather here in Scotland. In a word, miserable! While the index itself ‘only’ managed break our immediate drop target by 3 points, we have concerns should the market now manage below 7,153 points.
Achieving such a “lower low” will tend to indicate the FTSE 100 (UKX)- the index not after-hours futures – intends weaken further, potentially toward an initial 7,050 points with secondary, if broken, at a pretty miserable sounding 6,970 points.
We’re inclined to place a trigger level for such calamity at 7,120 points which rather neatly matches FTSE futures at time of writing.
Balancing this unfavourable outlook is the important detail we are about to experience the first Friday of the month, along with US Payrolls. US States have had exactly a day to cobble together some estimates which, invariably optimistic, could well throw a spanner in whatever misery the FTSE has in store.
However, the UK index needs better than 7,300 just to break the immediate downtrend and remove itself from a zone with some pretty vile drop potentials.
Source: Trends and Targets Past performance is not a guide to future performance
To give a sign the market intends an escape from all this weakening, the FTSE requires better than 7,194 as this looks capable of provoking an initial 7,220 points. Secondary, if bettered, calculates at a less likely 7,280 points.
This, unfortunately, does not remove the index from the overall misery zone which has 6,800 presenting an eventual attraction. We should also mention, the Brexit vote uptrend (red on the line chart) currently is lurking at 7,149 points!
Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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