Recent action in the equity markets
LOOKS corrective..ie we have had some sharp falls and now consolidating for another leg down..
BUT...as with all trading there are ALWAYS 2 possibilities (at least!).
Looking at the FTSE chart
weekly
We had a break of the uptrend since March 09. So at minimum we are in a corretcion of that, or now we are in a down trend. If a correction how far can we go? Look at the daily chart..
FTSE daily
BEAR view. Broken up trend, Head n shoulder formation targets 4600 area. 4520 is 50 % retrace of the move up since March.
The bear view gets seriously damaged if we close above 5300.
Looking at the DOW..very near term also painting a BEAR flag, but action since 10740 has been contained in a well defined channel (
BULL FLAG?)and a break above 10300 will get the bulls going again..
200 dma is at 9510 which would be a good target for this move down 6 % lower., MACD looks like it wants to turn up...but best wait for a bullish crossover.
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