FTSE for Friday: a market in search of direction
Given recent behaviour, independent analyst Alistair Strang wonders if there might be a little more underlying strength in the UK market than we’ve been giving it credit for.
30th October 2026 07:27
by Alistair Strang from Trends and Targets
We’re somewhat confused about the FTSE 100.
Until 19 October, the index had been behaving with a reasonable degree of logic. Since then, however, things have become decidedly messy.
What’s particularly interesting is that the FTSE has lacked the sort of volatility we would normally associate with a UK Budget. Traditionally, the day after the announcement can be especially interesting, once investors have had time to digest the small print and discover what the chancellor really meant.
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This time around, the market seems to have barely reacted.
With the USA experiencing some reversals following disappointing earnings reports, the UK market has largely refused to follow suit. Thursday, in particular, proved resolutely positive for the UK index.
Could there be a little more underlying strength in the UK market than we’ve been giving it credit for?
FTSE: the levels that matter
From a near-term perspective, a move above 10,775 should apparently trigger an initial advance towards 10,831, with our secondary target, should that level be bettered, calculating at 10,895 points.
Should the upside scenario trigger, the tightest sensible stop-loss level appears to be 10,720.
Our alternative scenario, for those who prefer to contemplate the less cheerful possibilities, requires the FTSE to move below 10,720 before any meaningful reversal gets underway. This could initially trigger a move towards 10,696, with our secondary target, should that level be broken, sitting at 10,670 points.
Admittedly, this isn’t the most spectacular haul of points, but the relatively modest potential reward is reflected in a tight stop around 10,745.
As always, these are conditional scenarios rather than predictions. The market gets the final say, regardless of what we might like it to do!
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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