FTSE100, bull run over or just pausing for breath?

So, we ended the week with it feeling a little like the old volatile times of not so long ago, a little complaceny being shaken off. The market seems to have turned its attention back to worry about macro issues and some old fears seemed to resurface. Does this mean the current bull run is over? A look at the charts would suggest no, at least not until some serious damage is done to the longer term weekly and monthly charts.

Below are the FTSE100 daily, weekly and monthly charts. The daily is bearish, the latest move down putting a dent in the previous bullish mood. However, one look at the weekly chart shows it still has a little way to go before the bullish trend can be said to be over. MACD is just turning negative, but is some way off the zero line, it could easily turn back up again. The Monthly chart is still positively bullish, MACD still looks quite strong. The monthly chart does give some hope to bears in that the latest candle with a long upper shadow is negative and bearish.

A long upper shadow indicates that the Bulls controlled the ball for part of the game, but lost control by the end and the Bears made an impressive comeback.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks

Worth noting however, that price had been outside the rising Bollinger Band on the Monthly chart and has now fallen back within it. Price had effectively got ahead of itself and once this happens it is not unusual to see it fall back inside the band. The Bollinger Band is still positive.

All to play for next week, the FTSE currently called to be down around 50 when the markets open on Monday.

Daily, weekly and monthly charts below.

FTSE100 - Daily

FTSE100 - Weekly

FTSE100 - Monthly