Signals for FTSE 100 in each of the last 5 weeks have pointed to buying dips. Although this has been the correct strategy with a gain of over 400 Pts since August’s low at 6492.0, last week’s dip buying on Wednesday was limited and temporary.
A sequence of higher weekly lows has been ended and signals for this week have switched from buying dips to selling rallies and the outlook is to sell on the open and at 6854.5, Thursday’s opening trade, with a stop loss at 6907.5, September’s 14 year top. Targets are to 6764.5, last week’s low, 6735.0/40.0, the 20th and 22nd Aug low trades and 6700.0, a 50% pullback to the Aug-Sep gains. 