FTSE London Index Daily Chart; New Record Closing High

The footsie prints a new record closing high yesterday at 7106 now printing at 7104. The prior intraday high for the FTSE from early October is 7130-ish so it will be interesting to see if it is taken out, or not. The pink arrows show standard deviation band squeezes resulting in big moves. Tight bands indicate a big move is at hand but do not predict direction. The August squeeze sent price higher, the November squeeze was lower and the December squeeze is a big-time upside rally.

Price has violated the upper band so the middle band at 6942, and rising, is on the table. The FTSE may want to retrace back to the 7K level over the coming days and couple weeks. The rising wedge pattern, overbot stochastics, near-overbot RSI, and negative divergence (red lines) all point to downside ahead. However, the RSI and MACD line is long and strong (green lines) in the VST so price may want to jog sideways for a day or four until both parameters can roll over with neggie d. So the 7130 remains on the table for a couple-few days. Then perhaps down to 7K.

The FTSE weekly chart shows negative divergence and is agreeable to a retracement ahead. The footsie popped this week on the recovery in the miners (the index is weighted with miners). The bulk of the upside move is due to the weaker pound since the Brexit vote in late June. A weaker sterling benefits UK exporters pumping their stocks and the broad indexes higher. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.