The shape of the FTSE100 chart in 2018 bear similarities with that of 2015. The top is more rounded than SPX. The turmoil over the forthcoming Brexit execution on Mar 29, 2019 makes this a less attractive market than other non-US indices. Note that the fractal predicts a low of 3896, almost exactly 50% down from the top. This compares well with the 53% drop in 2001-03 and the 51% drop in 2007-09. This is all dependent on a bear market developing globally. FTSE is behind the curve on this, probably buoyed up by weak GBP. But GBP is also behind the curve on rate hikes.
If a bear market does develop, traders need to know the 'shape' of it, ie where the rallies will reach for short entry.
If a bear market does develop, traders need to know the 'shape' of it, ie where the rallies will reach for short entry.
Trade active:
This is working, expect another small pullback, bounce and then a big one.
David Atherton
