I think it is important to signal that FTSE and S&P are forming topping patterns on the weekly chart. Bottom line: monitor support levels closely because a break would mean that the cyclical (bullish) trend that started in 2011 has ended. analysis Both indices had weekly divergences with the respective MACD indicator for a while and have recently started to weaken. The s&P shows a clear rising wedge formation (bearish reversal pattern) while the FTSE has a diamond/head and shoulder (bearish reversal as well). What Iâve noticed looking at them on a daily basis, is that they have been so far unable to move above previous highs and we have now a sequence of lower highs and lower lows, either intraday (SPX) or on a daily basis (FTSE). In both cases we have clear support levels which have not been broken yet: 6000 on the FTSE and 1600 on the S&P (see charts below). FTSE100 S&P500 http://pentothalta.blogspot.co.uk/
An acceleration on the downside in the next couple of days would in my opinion signal a wave 3 of the first move down. Have to check the monthly chart before i can say more. What do you think?