Our ‘Overall Market Ratings’ for the FTSE 350 and the S&P 500 continue to mark the progression towards a new ‘bull’ market. The OMRs of both these major markets must, for the time being, still be considered as indicating a potential ‘bull’ market trend rather than an actual ‘bull’ market because of the split of stocks between the Stage 1 and the Stage 2 proportions.
Once again though it is the UK market that is leading the charge; the FTSE 350 now has a majority percentage of all its shares in a ‘Stage 2′ Uptrend (for the first time since September 2007). The S&P 500 is following though and could, this coming week, see a greater number of stocks move from their Stage 1 Basing trends to a Stage 2 Uptrends.
It is notable how the picture presented by the charts of these major indices has moved steadily – and convincingly – over the past few weeks towards the start of a potentially exciting new bull market. It is not quite fully in place so volatility is likely to continue and to cause some damage but it is all beginning to look reasonably positive.
For the Uk market; The FTSE 250 continues with resistance overhead at the 8030/50 area. The index is ready to ‘breakout’ as, if it manages to break above the 8050 level, it is likely to climb quickly to the 8880 area. This index continues to display signals of strength and a confirmed break above 8050 will present a strong ‘buy’ signal.
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