FTSE was such a peach yesterday...failing on the topside giving the sellers an open book to drive the market down...that 78.6 Fib held us perfectly as you can see and down we came exceeding our 7123 target to trade 7118 and close lower.. Slightly higher preopen....but as I have banged screamed and wittered enough times until " CASH" opens 8am your time the SB companies can tae it anywhere.
So what for today...we have the teeny Double base at 7070...3rd attempt usually breaks it....The quite wide weekly ranges since we broke below the 7335 trendline in so conducive to a market where bulls and bears vie for supremacy....we call this a continuation pattern....The bulls cant let go of their trend...but the bears sniff blood as they have been badly hurt this past year and they really want to get back on top.....These wide ranges are perfectly acceptable within the continuation chart...all you have to do is pick the base support ad the top resistance....Now that base support is 7070....Lose this support... well give it a bit of room so 7050...and then we see FTSE kick off..as you know I have had 6914 as a target for quite some while...I see no reason at all to change my mind....
As with changes in trend short term or otherwise..we do have spoofs...but and its a big but unless that FTSE breaks above 7355 on a weekly close basis....we are going lower....Resistance from here is at 7160/70....7228...7235/45.....
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