FTSE weekly and daily..quick look at DOW

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.