The S&P 500 is testing the strength of the lastest potential resistance at the 1167 level. With this index having shown some strength during the last few weeks it may well find that the 1167 level presents no problem to its further upward progress. If it breaks above 1167 then it should continue all the way up to the 1290 level. This would be a significant increase even if it does take a month or two to get there and it will have positive effect on the UK market indices.
The FTSE 100 is, at the same time, very close to a test of overhead resistance at the 5770 level. The FTSE has pushed up quite strongly over the past few weeks so it may well take a pause, and put in a correction, at this level but all the signals currently suggest that 5770 shouldn’t prove too much of a resistance hurdle to overcome. If the FTSE 100 can get, and stay, above 5770 then, as we showed in our recent blog report, there is the juicy prospect of it climbing all the way to test the 6160 level.
During the last few weeks the FTSE 250 has also come out of its 6 month sideways doldrums and moved ahead. It is displaying an intention of rising to test the 10500 level.
So, for the moment, the markets continue to look relatively benign – but that can be dangerous and we must not take further increases for granted as it is often that the steepest crashes occur when least expected. Our one overriding concern is the picture being painted by our Momentum Indicator (‘MI’) which continues to suggest that the markets may soon make a meaningful top. That could happen next week or in a month or two’s time – but happen it will if the MI doesn’t soon put in a rise. Generally the market’s rise is unsustainable if the MI does not also rise. Here is the chart again –
Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/
Recent Comments