Last week the FTSE 100 closed 78 points (-1.4%) down. Hardly dramatic. Our trend analysis shows that the Uptrend is still in place and so higher prices are likely to re-assert themselves soon. It may not be during this coming week though as our Momentum Indicator is suggesting that there may be insufficient buying activity to lift the markets in the short term.
From the date (March 2009) that the stock market bottomed out the pattern of the FTSE 100 index has been a ‘wave flow’ of 1 to 4 weeks of higher closes followed by 1 to 2 weeks of lower closes. So last week’s small correction is just part of that pattern and this week we may see a perfectly normal extension of that correction before the index turns upward again – which we, calculate, should be the following week.
But, if that doesn’t happen then the wave-flow pattern will have changed and that could signify an imminent change in the dominant trend and be something to be very wary about. But that is a week or two away yet and, of course, may not happen at all. For the time being it is a matter of being prudent and not over committing to the market but also of being ready to take full advantage if, as expected, the market rallies later this coming week or during the following week.
Individual market commentary and illustrative charts are available at http://www.sharehunter.com/news/market-review/
0 Response to “What is Happening on the Stock Market?”