The opening two paragraphs of this weekend’s ‘FTSE Forecast’ Report, sent to all ShareHunter subscribers, warned of the danger of a big fall.
The ‘FTSE Forecast’ Report is summarised below – But don’t you think that it would be a good idea to keep yourself properly informed on where the FTSE is heading? You can subscribe for the weekly ‘FTSE Forecast’ and do just that. It is only £12 a month or, of course, you can subscribe for the full ShareHunter Alerts service and get up-to-the-minute top UK and US share tips plus daily stop-loss and profit-protection service. And the ‘FTSE Forecast’ then comes free.
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The ‘ FTSE Forecast’ Report on 10th July 2011 (extracts) -
The strength that the FTSE 100 showed the week before last ebbed away last week and left the FTSE 100 index with a ‘Gravestone Doji’ candlestick. This is normally interpreted as a bearish signal indicating a top reversal and, as the high of the week reached the heavy resistance area at 6055/6090, the creation of a new top has to be considered as a serious possibility.
It could also have serious consequences because, if a top does form, it would be the 4th top and the resulting fall could, therefore, approach being fast and furious -
FTSE 100 Weekly price chart -

Unfortunately, the FTSE 250 is not in a position to help clarify the situation. As expected, it has risen to test the strength of the resistance created by its May 2007 all-time-high value at 12236. From there last week it fell back to create a ‘shooting star’ candlestick pattern which is also normally interpreted as a bearish signal. But, again, conformation from the following (i.e. next) week is required for accurate interpretation
FTSE 250 weekly price chart -

There is not much help, strength or support coming from Wall Street either. The S&P 500 is finding the grip of the 1334/1350 resistance area too strong to escape from and, last week, it too gave a signal indicating the frustration and indecision existing in the market -
S&P 500 weekly price chart -

And, frankly, it is not really worth looking elsewhere in the World for opportunity just now. Much is written about the potential offered by the likes of Japan and, particularly, the emerging economies of China and India. Well, their major market indices are not looking very bright at all and, currently, do not even offer anything like the same degree of short term growth potential that is/might be available from the FTSE and S&P if those two indices manage an upwards breakout from the overhead resistance areas -………continued
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