FTSE250, new year, new high, can it keep going?

The FTSE250 has been going well for some time, which may come as a surprise as it is considered an index that reflects more the UK economy than the FTSE100, which does much of its business overseas. Below is the weekly chart which shows the breakout from around the 12200 mark at the end of last year and it is now heading towards 13000.

Question is, can it maintain this impressive upward momentum? You would have thought that at some stage soon there has to be a pullback at the very least and given that there is now clear daylight from the old resistance at around 12200, it can retrace several hundred points and still be bullish as resistance becomes support. All things point to any volatility in the next few months coming from the US and the debt ceiling talks which will almost inevitably go to the wire. Other than that the bulls seem to have the upper hand at the moment, but putting new money into the market now is fraught with pullback fears that could come at any time.

FTSE250 Weekly