For a while on Friday (30 Oct) it looked very much as though Thursday’s multi-point falls were going to be nothing more than a short term blip on the general upward moving trend, especially as the lows hit on the previous day coincided precisely with our long held support levels for both the FTSE 100 and the FTSE 250.
As the current dominant long term trend for the London Stock Market is still an Uptrend, this may well still be the case. However, after a weak opening on Wall Street, Friday afternoon’s movements in the FTSE indices wiped out the morning’s gains and at the close the indices were once again hitting on our defined support levels. This means that there is a critical aspect to be watched this coming week because, if the support levels fail, the markets are likely to tumble, possibly crash!
The FTSE 100 must close next week above 5100; if it closes below this then we expect it to tumble to the 4660 level shortly afterwards. The FTSE 250 must close the week above 8880. If it doesn’t then it too will fall and this could see an 800 point fall to the 8030 level.
So there you have it, the next week or two will show which way the markets are heading and, just at the moment, there is a chance that it could get a bit painful for anyone locked into the market.
Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/
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