• 405 days Will The ECB Continue To Hike Rates?
  • 405 days Forbes: Aramco Remains Largest Company In The Middle East
  • 407 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 807 days Could Crypto Overtake Traditional Investment?
  • 811 days Americans Still Quitting Jobs At Record Pace
  • 813 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 816 days Is The Dollar Too Strong?
  • 817 days Big Tech Disappoints Investors on Earnings Calls
  • 818 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 819 days China Is Quietly Trying To Distance Itself From Russia
  • 820 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 824 days Crypto Investors Won Big In 2021
  • 824 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 825 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 827 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 827 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 831 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 831 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 832 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 834 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Market Report: Has The FTSE Put in a Major Top?

The strong decline on the FTSE over the past few weeks may have come as a surprise to many traders but for us it was expected. It really could not have gone any better for members. I have been warning members for a number of weeks to expect a strong reversal and a crash style move, although we have been preparing for a strong decline; members have also been trading the upside, as before members could trade the downside we need to see the 6900 area tested.


Before

FTSE Before Chart
Larger Image


After

FTSE After Chart
Larger Image

Short term we can count a 5 wave decline from 6904, so that's a positive sign for the bears, currently we are looking for a corrective bounce in 3 waves to end around 6400-6500. Once any corrective bounce and retracement of the prior decline is finished. We are looking for the next leg lower, that move is expected to exceed 6000, if it's as aggressive and bearish as I think it will be, it's going to be a terrific trade and better than the initial decline from 6904. Our risk point at this stage is 6904, which is too large, so we are looking for evidence of the next leg lower.

FTSE Chart
Larger Image

The key now is the make sure any retracement is in 3 waves, if so then we will be looking to put on shorts and advise members to sell this market, if it's really put in a long term major top we are expecting a serious decline over the next few months and potentially retesting the March 2009 lows again.

FTSE Chart 2
Larger Image

As always the long term ideas are subject to revision as a lot can happen between now and a few years out, but as our primary focus is on the short term charts the long term charts usually take care of themselves.

If this style of analysis is the sort of analysis that you are interested in, then I encourage you to check out our site, if you need to know what is going to likely happen before it happens then I think our work can help you, no matter if you are an investor of trader.

Until next time,

Have a profitable week ahead

 

Back to homepage

Leave a comment

Leave a comment