Here’s what could trigger FTSE 100 surge

Written: 12/03/2017 at 22:17

FTSE for this week (FTSE:UKX)

Sometimes, a considerable amount of time is spent compiling our Sunday evening article for the coming week. And sometimes, when it's re-read prior to publication, a wonderful essay on the markets & slave labour, society, and the future gets binned.

We're not economists, nor even civilised at T&T. All we do are numbers and shouldn't speculate why the FTSE 100 may reach 10,195 points. But our software says we should mention it.

Rather often, we find ourselves writing "okay, this is probably silly but..." with it transpiring our calculation wasn't silly, emphasising we should just discuss the numbers and ignore the potential for ridicule.

Apparently, if the FTSE now closes a session above 7,393 points, or trades intraday above 7,408 points, it enters a path toward 8,186 points, with secondary a longer term 10,195. Stop, if triggered, can now be at a tightest 7,220 points if feeling gullible.

The implication behind this statement, about which we have no opinion, is one of underlying strength, so we need to look for anything capable of triggering this set of circumstances.

Near-term, if the FTSE trades above 7,373 points, we are looking for growth toward an initial 7,398 points with secondary, if bettered, at 7,443 points.

And this takes the UK market into the future growth zone, essentially above Marty McFly's car trigger zone. Better still, our other Big Picture argument favouring some stutters around 7,520 enters the top of our screens.

How do we spot it all going wrong?

Visually, last week 'felt' as if an effort were being made to stop the markets going up, but, currently, the FTSE must fall below 7,270 to justify concern, as this permits catastrophic failure to a gullible looking 7,235.

The reason we'd experience collywobbles at such a number is the implied near-term bonk against the 'red' uptrend, along with an implied threat of 7,160 points. Or even 7,085 if it all starts going wrong swiftly.

At such a level, we'd need to revisit the numbers again due to the threat of a further 300 point droop.

For now though, the markets look rather strong.

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.