All the major markets have continued to move ahead. They all have some scope for further increase before having to test the strength of the next level of resistance. The FTSE 100 could yet move up another 250 points or so before having to test its (likely) strong resistance at the 5108 level area. The FTSE 250 is in much the same situation with scope of some 210 points or so more before it mets with its likely strong resistance at the 8888 level area.
And, of course, there is nothing to say that these markets won’t just sail up through these levels; although we doubt that will happen. The markets are due a retracement; those levels are of comparatively strong resistance; and there is the ever nearing 80 year cycle of the 1929 Wall Street crash and the other market similarities with 1929-34 that we highlighted in our recent bulletin.
And what of Wall Street? Well,the S&P 500 has some 90 or so points to go before it closes with its big resistance test and the DJIA has 800 points to go (but only 200 to a first level resistance). With October just five weeks away there is time yet to get some more ‘long’ trade profits under our belts before we really have to consider how to cope with a serious retracement.
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