FTSE 100: Is the only way up?

FTSE for the week (FTSE:UKX)

A misery Monday or a happy Monday? Too often, Mondays are pretty grotty, but from the point at which the FTSE 100 finished on Friday we're supposed to be brimming with optimism for the week ahead!

The problem is of our own making. We'd suggested if the FTSE closed above 7,290 the possibility existed of early warning for a miracle recovery from the current drop to 6,750 zone.

The FTSE indeed called our bluff, closing Friday at 7,297 and creating a scenario where movement now better than this closing price introduces the market to a region where 7,385 becomes possible, perhaps even 7,480 in the fullness of time.

For the next few days, our 7,385 ambition will prove capable of regaining the Brexit vote uptrend, something which generally proves to be a "good thing" as strong and stable growth will often follow thereafter.

An encouraging detail came from FTSE futures in afterhours trading on Friday as they rather confidently moved into the 7,320s.

If trouble is planned, the market now needs to breach 7,230 to drop out of the immediate uptrend as this could easily permit weakness to 7,182 points. And if this number breaks, a further 100-point drop toward 7,085 looks probable.

Perhaps this shall not prove such a big deal as, visually, it seems a bounce can be expected at such a level -presumably aimed at keeping the FTSE in line until the General Election results are known.

Cynical? Us?

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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