Investing.com UK - Financial Markets Worldwide
⚠ Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Rally In The FTSE 100 Could Extend

ByThierry Laduguie
Published 10/11/2014, 07:58
UK100
-
US500
-

A rising BTI (sentiment indicator) is bullish and there was always a chance this indicator would turn up as the rally in the FTSE 100 is still underway. This is not ideal if you are a bear, but as it happened last week the BTI can turn up for a day or two and then it's down again. We'll wait and see before turning bullish. We are at or near a turning point based on the wave count, the other factor is seasonal influence which is positive so there is potential for the rally to extend this week.

But upside is limited in the US. The S&P 500 has gone up in a straight line, the index is near an important resistance line. Friday's nonfarm payrolls was slightly below analysts forecasts and the unemployment rate fell to a six-year low. It would appear that the nonfarm payrolls report had a positive effect on investors but despite the positive report the rally looks like a counter trend move and not an impulse wave.

One thing to remember, it is always preferable to go long at the start of the rally rather than near the end. The start of the rally was after the correction during the third week of October. The rally has now retraced more than 61.8% of the decline so we are no longer near the start of the rally. A second wave can retrace more than 61.8%, but given the sharpness of the rally in the US chances are the rally is either over or there will be a significant pullback before it continues. Either way a decline will come.

FTSE 100 Hourly Chart

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.