Written 1st June – 00:34
FTSE for Friday (FTSE:UKX)
It has been a “blink and you missed it” short week and as we go into June, we’re filled with some very real concern as to the markets intentions. To be fair, we’re less than convinced the market itself has any clue which direction it wants.
Like redundant Xmas baubles, we’ve shown a couple of circles on the chart as they conceal a couple of issues.
On May 22nd, the FTSE (UKX) was gapped down at the open, expressing its opinion against whatever is happening in Italy apparently. Whereas, on May 31st the FTSE was gapped up at the open, doubtless due to something else important. Gaps on the FTSE itself – not futures – tend be quite rare, generally providing a pretty clear idea of the markets intentions.
This time, perhaps not, other than give us a pretty clear idea of a market which doesn’t have a pretty clear idea… This, obviously, makes our job a little dangerous as while it’s easy to generate triggers and targets, we do prefer some clues as to where to place “bias” in outlooks.
If we rely on cold logic, near term for Friday it appears movement bettering 7,722 is supposed to bring some growth toward an initial 7,759 points. If bettered, we are supposed to mention 7,818 in the next breath. If triggered, stop can be at 7,650 points, uncomfortably wide.
What is supposed to happen should 7,650 break?
Fire, pestilence, LibDems, the usual. Or more probable is weakness to 7,609 points initially. If broken, secondary now comes in at 7,562 points. If triggered, stop can be at 7,693 points, a relatively tight position.
About the only thing we can suggest in summary is, despite the two circled gaps, some effort has been made to keep the FTSE above red. So perhaps an imminent collapse is not – yet – on the cards.
Source: interactive investor Past performance is not a guide to future performance
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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