The depressing and demoralising sideways trend of the stock markets continued last week and no particularly material changes were made. The overhead resistance that is above the S&P 500 and the FTSE100 continue to oppress and restrain any potential upward move. Basically, the FTSE 100 and FTSE 250 indices have failed to make any upward progress for a total of 13 weeks now. As we have commented, this is depressing enough but also it does increase the posssibility of a serious fall if there were to be some (international) bad news. Let’s just hope that it is only good news – at least until the resistance levels are overcome.
However, there is just a possiblity – no more than that at this stage – that there might be a prices surge in the offing. Our (propriatary) Momentum Indicator is pushing on upwards and has brokenout above old highs. This indicator is based on the ratio of stock price increases against decreases and so is, usually, a reasonably good indicator of future moves on the stock market. We show below a chart of each of the FTSE 100 and the FTSE 250 with the Momentum Indicator shown (in blue) in the lower half of the chart. Note how it has taken off upwards of late without, so far, there being any corresponding increase in the index. Maybe, just maybe, the index will react positively within the next week or two (or three). Let’s hope so.
Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/
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