We have been closely watching for the end to an upside corrective bounce from the Aug 2019 lows, the same look can be seen on many other European markets such as the Cac 40 and Euro Stoxx 50. Last weeks high could be enough to suggest the upside has ended, although until we see either an impulsive decline below 11800, then we can still allow for a bit more upside.
As long as any further upside remains below 12650 then we are going to stay bearish and target more weakness and continue to look for a move below 10000 and retest the Dec 2018 lows.
Staying bearish below 12650.
European traders that are actively trading the FTSE, CAC or DAX, should take note of the look from the mid-August lows. If the bounce remains in 3 waves, then it can set up for a move lower, you can cross- reference most of the major European markets such as the AEX or Euro Stoxx 50, they too are showing the same 3 wave looking rally at the moment. If that remains, and the current upside holds below their respective Jul 2019 highs, then it can set up for a move lower.
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