FTSE 100 update

FTSE100 looks like it may be at a crossroads on the daily chart.  After the recent good run the MACD indicator is suggesting that a pullback may be due.  MACD has been above the zero line for some time, effectively confirming the 20/50 dma crossover to the upside back in July.  The Bollinger Band on this chart has also opened to the upside, but it now has a look about it that suggests it might be about to close.  The 20 and 50 dma are still positive, so, it is possible that the FTSE is pausing for breath before an attempt on 6000, or will it pull back to test the lower support levels and 20/50 dma.

The Dow has a similar look about it and where the US market goes the UK usually follows.  MACD for the US is slightly ahead of the FTSE in looking like a cross towards the downside could happen.  However, the MACD is still well above the zero line, so it still could either way.

FTSE100

Dow