• 525 days Will The ECB Continue To Hike Rates?
  • 526 days Forbes: Aramco Remains Largest Company In The Middle East
  • 527 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 927 days Could Crypto Overtake Traditional Investment?
  • 932 days Americans Still Quitting Jobs At Record Pace
  • 934 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 937 days Is The Dollar Too Strong?
  • 937 days Big Tech Disappoints Investors on Earnings Calls
  • 938 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 940 days China Is Quietly Trying To Distance Itself From Russia
  • 940 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 944 days Crypto Investors Won Big In 2021
  • 944 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 945 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 947 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 948 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 951 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 952 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 952 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 954 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Dow And Footsie Updates

Let's start with the Footsie daily chart.


Footsie Daily Chart

Footsie Daily Chart
Larger Image

Currently the Footsie is tracking out exactly as laid out in my previous report. That requires one more pop up into a top above the recent top of 6895 but should be held by the 1999 top of 6951. The recent drop had a couple of hits against the lower Bollinger Band and has now made its way back to the top band signifying the final move to high is now underway.

I have added a Relative Strength Indicator (RSI) and a Momentum Indicator. It can be seen that since the February and May highs, each high has been losing both strength and momentum. This final high, quite possibly this month, should see a third bearish divergence in both indicators. That could be expected to then lead to a significant decline and probably signal the end of the bull market that has been in force since March 2009.

Now let's take a look at the daily chart of the Dow Jones Industrial Index.


Dow Daily Chart


Larger Image

I have drawn a horizontal line across the two recent tops in June. This area is just below the key psychological level of 17000. Importance is often given to such big and round numbers. (Remember Dow 10000?) I originally thought the final high may be just below this level. However, now with recent testing of this level there must be quite a few stop loss orders building above this level just waiting to get taken out. That should see the Dow pop higher in one last short covering rally.

I've also added the RSI and Momentum indicators. The RSI has broken the bearish divergence shown from the June tops and this also suggests a surge is set to take place. The Momentum Indicator shows the uptrend since February is just about out of puff. Not long to go now folks!

Now going back to my Footsie analysis, in my previous report I stated I expected a high between 6895 and 6951. I still stand by this prediction. If that is correct then with the Footsie currently just above 6800 then the top should be around 1.5% to 2% higher than current levels. If we apply the same move higher to the Dow then we could expect the Dow to top around 250 to 350 points higher from current levels. That would project a top around 17200 to 17300. And I've still got the next major Bradley Model turn date of 16th July 2014 in mind. And with the market seemingly heading up into that date then that could quite possibly be the topping time period. Let it roll ...

 


Note - please email me if you are interested in reading my recent technical analysis articles on both the Footsie and Dow.

 

Back to homepage

Leave a comment

Leave a comment