Analysis: FTSE 1OO and S&P 500
Our chartist examines indices both here and over the pond. Find out why he's not 'oozing optimism'.
12th July 2019 09:26
by Alistair Strang from Trends and Targets
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Our chartist examines indices both here and over the pond. Find out why he's not 'oozing optimism'.
FTSE for Friday & S&P 500 too
The 'damage' enacted by Trump's presidency continues to wreak havoc on US markets with the S&P now stronger than ever before. So are the Dow Jones and Nasdaq!
It makes a painful contrast with the UK's "strong and stable" rhetoric while the FTSE 100 index struggles to reach any realistic growth levels.
Maybe we need to build yet another wall to keep Scots out, because some ideas work in unexpected ways...
The S&P now needs better 3,003 to enter a cycle toward 3,027 points next, perhaps even 3,046 points thanks to all the opening movement gaps.
Longer-term, the index now looks capable of 3,163 as the next major point of interest. The market needs to fall below 2,875 to indicate the rising phase is starting to fail.
Source: Trends and Targets Past performance is not a guide to future performance
As for the FTSE and Friday, as mentioned earlier, the index continues to behave poorly and weakness now below 7,500 looks capable of a near-term 7,473 points.
If broken, secondary is at 7,424 points and we'd hope for a rebound at such a level. If triggered, the tightest visual stop is at 7,532 points but realistically, we'd prefer 7,560 as this one appears too much like a free gift.
The converse situation, what happens if the index betters 7,532 is pretty straightforward. Initially we'd look for some recovery to 7,558 points. Secondary, if bettered, calculates at 7,598 points.
We're not oozing optimism, given the UK market managed to close below its immediate uptrend. Equally, if we applied similar acceleration force to those experienced in the USA, the UK should be trading around 7,750 at present.
Source: Trends and Targets 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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