With the FTSE100 I'm not convinced that there is the strength to maintain a consistent move above the resistance level of 5800 let alone mount an assault on 6000. There would probably need to be some perceived resolution of the Eurozone problems, even if it is more of what has gone before - no real resolution - by the markets to move ahead really strongly. However, it's still possible that there are one or two further upward moves to go before this rally exhausts itself and we get a more concerted correction.
As always, much may will depend on what happens in the US markets. We have the US elections and the possibility of the fiscal cliff taking us into the new year. In recent times the US political process has tended to push things to the wire when it comes to getting an agreement and the chances are we will see the same this time. All of this may well lead to more volatility, although it could be 2013 before it really gets going.
On to the charts.
Haven't looked at the FTSE250 for a while, but like the other indices once we got the 20/50 crossover it has enjoyed a steady rise over the summer. Like the other indices however, this now looks under a little pressure. The 250 is a closer reflection of the UK economy while the FTSE100 has a global look about it, yet despite the somewhat stagnant UK economic performance, the 250 has done ok recently. It can however move sharply to the downside once sentiment and momentum changes.
The 20 dma is being tested on all three, with a slight look of weakness showing, but nothing yet to confirm a solid change in direction. Again, we wait to see if these 20 and 50 dma hold and continue their move up.
 |
| FTSE100 |
 |
| FTSE250 |
 |
| TechMARK |
No comments:
Post a Comment