FTSE for Friday and Wall Street too
15th October 2021 07:29
by Alistair Strang from Trends and Targets
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Global stock markets seem to have rediscovered their mojo. Independent analyst Alistair Strang assesses the odds of seeing new all-time highs?
There are early signs the market(s) are poised for further recovery/growth. Wall Street - the Dow Jones - is a case in point, the index managing to clear the immediate downtrend. If we’re honest, reversals through September felt similar to one of these ridiculous “it has to go down, before it goes up” moments.
The funny thing is, the primary US market has been essentially flatlining since May this year, albeit a flatline with a 1,000 point variance. However, traders were not short of complaints regarding the lack of interesting market activity.
The big question we need to ask is fairly important. Are there sufficient forces in play to take the market above the flatline? Will we see new all-time highs?
The immediate situation suggests near-term traffic above 34,930 points allows recovery to an initial 35,078 points. If bettered, our secondary calculates at a healthy sounding 35,401 points.
While the visuals indicate the potential of some hesitation at our secondary level, we’re not entirely sold on the idea thanks to how well defined the immediate Blue downtrend has been. Instead, we suspect our secondary shall be exceeded, allowing a Big Picture potential of further growth to a new all time high level of 36130, maybe even higher.
For everything to start going horribly wrong for The Dow, the index needs below 33800 points. At present, nothing threatens such reversal.
Source: Trends and Targets. Past performance is not a guide to future performance
FTSE for Friday
The FTSE looks like some gains are possible but once again, we need point out our sense of time is ridiculous! It was to take almost a week until the market made it successfully to our target, achieving a high of 7216 points on Thursday.
This time around, we remain hopeful for the UK market, the immediate situation suggesting movement above 7,216 points should aspire to an initial tame 7,230 points. To be fair, we’re inclined to ignore this potential, instead preferring to treat 7,230 as a proper trigger level. The tightest stop looks like 7,187 points.
Above 7,230 currently calculates with the potential of growth to 7,262 points. If bettered, our secondary works out at 7,330 points. In fact, we can even extrapolate a very possible third level at 7,355 points. This third level is liable to become a bit of a problem, impacting the downtrend since 2018.
If things intend go wrong, the FTSE needs to weaken below 7,157 points, as this works out with an initial reversal target of 7,123. If broken, our secondary is a bit more traumatic at 7,070 points and hopefully a bounce, the movement itself being viewed as an attempt to slow down a market which is heating up
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.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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