Has frothing FTSE 100 run out of steam?

This week, finally, has provided the sort of week we tend expect for August - i.e. pretty boring. However, movements in the closing minutes of Thursday were to prove interesting as the market managed to very slightly move above the week's downtrend, perhaps signalling some upward froth for Friday.

Alas, in after-hours clearing, the FTSE 100 managed to find itself closing Thursday at 6,869, very slightly below the ruling trend.

It has created the situation where we need to see London trading above 6,883 points, as this should prove capable of producing growth toward 6,908 with secondary calculating at 6,950. Given the current lethargy of the markets, we wonder whether - if triggered - it shall be next week before the secondary makes an appearance!

Of course, if the market intends on a slowdown, the FTSE need only drip below 6,851 to signal a useless 6,844 points initially, with secondary coming in at 6,818.

FirstGroup

Amongst many shares, we've chosen to treat the fake upward movement before the Brexit drop as deliberate "enhanced market control" rather than actually part of the ruling trend.

As the blue line shows, FirstGroup has once again moved above the downtrend and it appears to be through honest trade forces, giving an interesting near-term prospect. Near-term, it appears anything above 108p should prove capable of growth to an initial 118p, with secondary a surprising longer-term 138p.

If any attempt is made to spoil the party, the share price needs close below 'red', currently at 91.7p.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.