Markets Review – as at 9th March

The markets are continuing with their downtrends with the prospect (therefore) of more falls to come. However, there is now the possibility that the indices might enter a new congestion phase as index prices have fallen way below their moving averages and, as is (always) the way when this happens, the two will want to come closer together again at some point

The FTSE 100 has fallen to our test level and may (repeat, may) rally a little.

The FTSE 250 has, at last, started to fall away from the ‘glue’ provided by the important 6100 level. In truth this index has been something of a puzzlement to us as it just has refused to fall in concert with the other indices but it is now looking as though it might now conform and thrust downwards. The danger, as we have expressed previously, is that it might play ‘catch-up’ and fall steeply and fast (on the other hand it could just continue to confound us and our analysis!).

The DJIA has now fallen below support and is plumbing new depths.

The S&P 500 has followed our thought that it would fall hard and quickly once it broke below the important support area at 790.

We now have the following levels as likely to provide some temporary support and, possibly a small rally, before lower prices recommence (if the downtrend is still in play)..

Temporary support should be found at, or close to, -

FTSE 100 – 3280                               FTSE 250 – 5000

DJIA – 5000                                        S&P 500 – 600