Thursday, 16 April 2009

London's FTSE preparing for a big move?

Since late March the U.K.'s FTSE index has been behaving more erratically than US equity indices with two large reversal candlesticks observed in the neighborhood of the pivotal 3900 level.

The recent technical condition suggests that a big move lies ahead, and although it may well be influenced by local conditions such as the horrendous state of the public finances in the UK, it is more likely to be driven by global factors. On that score several key markets are showing signs of intermediate term topping patterns. But we shall have to see whether the US financial sector can continue to perform its magic in massaging the numbers.

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