#FTSE Big Picture and some unspeakable stuff! #DAX #BRENT A surprise erection and the stock markets. Unless discussing building projects, the “erection” word is one blokes avoid. However…
I’ve just enjoyed an unusual week, filled with pretty ladies from exotic locations and a distinct lack of clothing. Unfortunately, the only person lacking clothing was to be myself and the ladies were either Doctors or Nurses trying hard not to kill me. A bad blood test, a leukaemia diagnosis, an insane week on the market too.
I suspect the medics succeeded in their task but something sure as hell killed the FTSE last week.
This is doubtless one of my more unusual headline articles for “Trends and Targets” but don’t worry, a stock market mention will be justified, if only I could stop thinking about that erection. Last time I checked, I wasn’t 15 years old and generally thought myself in control of stuff. To be fair, wearing a gown while plumbed into an IV and surrounded by nurses tends imply a lack of the erotic. But when one of the nurses dumped a pillow on my lap – to be comfortable – it made sense to lift it behind my head. This proved to be a big “Nope” thanks to one of the premeds injected prior to the main course and despite years of practice, the resultant effect proved wildly embarrassing. But like a real man, I fell sound asleep shortly afterward.
Did I mention my wife was sitting alongside?
A few hours later and wide awake again, my wife (looking like she needed surgery for the malicious smile) explained the reason for the pillow I’d eschewed. Nurses try avoid embarrassing patients as the glaringly obvious does not happen every time.
This, thankfully, brings me to stock market spikes, unusual price dips or surges. Rather more often than is comfortable, a surprise upward surge will often be the harbinger of doom. For the FTSE, the damage was enacted back in May, causing us to anticipate a market reversal to 7120 points. In fact, the scenario became boring, right until October 9th when it became inevitable. In the period since, things have managed go pretty poorly as we’d prefer the FTSE bounced at 7120 points, rather than dash below the target level as if it were not important. This is a “thing” for us, usually signalling we’ve been watching the wrong trend.
For the FTSE, the bad news number is now at just 6950 with movement below bringing the threat of a confident drop cycle toward 6650 points. Visually, there is a heck of an argument demanding a bounce if such a level appears but it’s scary. Should the index find a future reason to trade below 6650, continued travel down to a bottom of 5870 makes sense.
Of course, rather than going wrong, it could all go right?
We have doubts.
At present, the FTSE requires exceed 7500 points to now utterly cancel a suspicion we shall witness the index at 6650 points eventually. If we insist of playing fair, to gauge strength, anything now above 7030 points should challenge an initial 7046 points. If bettered, secondary is at 7076 points. Despite these obviously presenting near term trading opportunities, the crucial element comes if 7076 exceeded as this presents the first signal bottom may be actually “in”.
As we’re ticking boxes, the next key element comes above 7076 at 7164 points. Finally, above this calculates with 7360 along with a future challenge of the downtrend since May.
For now, we fear the intention is for 6650 to make a guest appearance. The market was deliberately manipulated downward at the open on 11th October, generally this sort of helping hand suggesting a master plan may be underway.
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