FTSE for FRIDAY #SP500 #NK225 The UK market celebrated Valentines Day by trading higher than any point since last November. Better still, the market also closed higher, suggesting some real strength exists for future market recovery. As a result, we need adopt a pedantic stance before playing with party poppers.
The BLUE downtrend on the chart below is presently at 7514.112 points. Only in the event the FTSE trades above this dare we finally, completely, abandon the calculation which presently demands the market is on track for reversal to 5840 points. In fact, to get completely jobsworth the trend is diminishing at 1.45294879 points a day (roughly). On the day of Brexit this BLUE downtrend will be at 7451.68 points.
This nonsense actually does have a point. The immediate situation for the FTSE is of movement above 7233 pointing at coming growth to an initial 7249 points. If bettered, our secondary calculates at 7307 points, a level where we suspect some hesitation shall be in evidence. The tightest stop position appears to be 7176 points!
As the chart shows, the market will be nowhere near the ruling downtrend.
To break with tradition, we can give a third ambition should 7307 be exceeded. It allows future recovery to a further 7404 points.
And still, the ruling downtrend remains safe and the logic for 5840 will remain valid, if on very dodgy ground. But importantly for UK politicians, if they intend to stuff the country, they are still able to do so. Unless the index betters that BLUE line, there remain plenty of opportunities for our wonderfully talented leadership (and contenders) to flush things down the toilet.
If we choose to abandon cynicism, the strength of moves thus far in 2019 actually suggest the UK index is on a cycle to 7743 points eventually. We do not take this calculation terribly seriously at present.
What happens near term if the market fades below 7176 points?
Initially, weakness to 7159 looks very probable. If broken, secondary comes along at 7133 points. Stop can be at 7220 points.
Neither calculation provides any sort of impressive drop and we remain with a sneaking suspicion the market is just “going through the motions” in the run up to Brexit. We’d only feel justified in raised eyebrows in the event the FTSE now reverses below 6991 points. This is very liable to provide early warning of the aforementioned toilet being flushed…
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:24:09PM |
BRENT |
64.58 |
Success |
||||||||
|
10:26:37PM |
GOLD |
1313.11 |
Shambles |
||||||||
|
10:29:27PM |
FTSE |
7198 |
‘cess |
||||||||
|
10:31:31PM |
FRANCE |
5066.5 |
‘cess |
||||||||
|
10:33:40PM |
GERMANY |
11087.97 |
|||||||||
|
10:35:55PM |
US500 |
2742.72 |
2725 |
2715.5 |
2700 |
2748 |
2755 |
2763.5 |
2791 |
2735 |
‘cess |
|
10:39:44PM |
DOW |
25424 |
Success |
||||||||
|
10:41:54PM |
NASDAQ |
7015.75 |
‘cess |
||||||||
|
10:44:03PM |
JAPAN |
20980 |
20940 |
20854 |
20740 |
21120 |
21222 |
21259 |
21618 |
21020 |
‘cess |
14/02/2019 FTSE Closed at 7197 points. Change of 0.1%. Total value traded through LSE was: £ 5,282,181,289 a change of -13.05%