In summary;
Not much to be said this week. Although we worry that we are tempting fate…it can be said that the main market indices present a reasonably benign picture at present (that could be the cue for a major market upset!!).
The FTSE looks to be en route to a test of resistance at the 5770 level and the FTSE 250 has, at last, started to show some gains and could be on for an attempt at the 10500 level.
It will really depend on Wall Street; the Dow is still not showing much enthusiasm for higher prices although the S&P 500 has now broken out above the very important 1122 level and could, if its support continues, head on up for a test of the 1290 level. But that is quite a way ahead yet. The important thing (for the FTSE) is that the US markets do not weaken.
The Uptrends remain in place on all of the major indices and their moving averages continue sloping upwards so any correction is likely to be short lived and relatively minor (there we go tempting fate again).
Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/
Our proprietary ‘Momentum’ indicator has been in a sideways move since early September.There is no upward momentum – only a sideways trend with a slight downward inclination. This indicates that the growth prospect for the major UK and US stock market indices is stalled and may be limited.
This was reflected in the lack of upward movement in the indices last week and, more importantly, it implies a potential for a top to form and for the indices to trickle downwards.
At this stage any such retracement in the market indices looks as though it should be relatively gentle as there is potentially strong support not far below current index levels (see the individual markets analysis). But the danger then will be that a relatively gentle correction can turn nasty and morph into a full blown retreat. That remains a possiblity, we think, for 2010; at the moment the dominant trend is still North facing and, as such, it promises higher share prices to come but this can only happen if the resistance pressures lying just overhead (see the individual market analyses) can be overcome; with a moribund ‘Momentum’ indicator this is problematic.
Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/
Recent Comments