26/09/2012

FTSE very close to bear market warning

FTSE is now trading below its 8 WEEK MA at 5.800. If the trend gets below critical 5.772.25 that MA will turn down. If a weekly close on Friday gets below the critical point the 8 MA will stay down for at least two weeks as it looks right now. As usual FTSE is first to show the way. Market is moving slowly now but that can change easily when the US wakes up. If FTSE will close below 5.772.25, which we might see already today or the next two days, that is a sell signal.

On the 30 min chart close the break down point is 5.801.63. The last close was 5.795.37. A retest from below on the break point can occur. If that point holds and FTSE takes a new low the target will be 5.740 which indicates that the 8 MA will turn down today.

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