FTSE 100: An 'amazing perspective'

FTSE for the week (FTSE:UKX) 

On Friday, we coughed politely and mentioned 8,022 points had crept into our calculations. Given the perilous state of world peace with a pending war against Spain, we're mildly curious if the market stumbles below 7,294 to cancel this amazing perspective!

Interestingly, below 7,294 takes the FTSE into a zone where reversal toward 7,185 becomes possible with secondary at 7,083 points.

But, in this instance, we're not entirely confident with these drop potentials, the reason coming from the post-Brexit vote manipulation.

Visually, the forced spike downward following the vote created a fake drop, one which we've never been entirely comfortable with, as movements since the vote have tended to behave in accordance with the dashed red line on the chart, rather than the obvious fat red line.

This results in the situation where the FTSE actually needs to break 7,220 currently to utterly trash the 8,022 calculation.

The flip side of the coin is the FTSE now need only better 7,375 points to suggest coming oomph toward 7,447 initially with secondary, if bettered, at 7,490. Or perhaps even 7,620 if everything goes nuts with the thrill of a coming war.

Finally, we referred to the 1st of April as "April Politicians Day" rather than the traditional "April Fools' Day". The prize, obviously, must go to Lord Howard and his backing singers in the media...

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.