Pivot Point 5297. Plan to go Short on any retest of Daily 10ema (5422) and Long from 5250 if retest of recent Low holds. S&P500 2% fall on Friday will have the Bears looking for 5200. Will be watching the reaction in Asia before the market opens on Monday to see if we bounce from here. The market has gone nowhere for the last 2 years (22nd Jan 2008 Low 5339)
I use the Weekly 10ema(5332) > 20ema(5237) as a Guide to market direction. It gave as SELL signal in Oct07 at 6500 and a Buy signal on Monday 13th July09 at 4100, when the Market continued to rise and peak on Monday 16th November at 5396 (Day 90). Next 90 day cycle saw the FTSE hit a High on Wed 30th December at 5443 (Day 30). Peak 5600 reached on Monday 11th Jan (Day 36). 5253 is the current low point on Friday 22nd Jan (Day 45). Next 90 day cycle ends Monday 29th March.
BULL Target 5600
Respect of strong support at 5200 should see the Index back testing 5600 by Thursday 11th Feb.
BEAR Target 4980
Failure of 5200 will signal test of Daily 200ema at 4980
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