A remarkable two weeks allowing us to enjoy (mainly) increasing prices.The S&P 500 has managed to break above resistance (at the 950 level) and, provided it can confirm its strength by staying above 950 this week, there does not appear to be too much to prevent it running up to the 1100 level – taking most of the world’s markets up with it.

For the UK the index to watch most closely is the FTSE 250 (NOT the geographically wider FTSE 100). The FTSE 250 index has been moving up and down withing a lower limit of 6850 and an upper limit of 8050. It is now close to testing the upper limit and the result will be definitive for the next few weeks. If it breaks above 8050 (as it looks as though it should) then it will move, probably very quickly, up another 800 or so points to the 8850 area. However, If it cannot get above 8050 then it is destined to fall back and continue a moribund existance for a few more weeks.