It's stating the blindin obvious to say that Friday's going to be a big day, but it certainly could be for the FTSE [[^FTSE]].
As someone who feels more at home in a big furry coat than wearing horns and snorting, I've been feeling slightly uneasy over the past couple of days. I've been paying a bit more attention to the slower moving weekly charts that still portray a convincing uptrend.
Scaling down to the daily chart the FTSE has withstood the first assaults on 5000 and put in a half-decent day today, breaking back above the recent downtrend line. The past two days churned out classic doji candles, though this probably isn't surprising given the plethora of top-draw central bank and economic announcements.
The RSI and MACD indicators reflect a diminishing enthusiasm for selling the market, which again can be attributed to the ‘do nothing' mentality ahead of US payrolls. But today's stockmarket rally has put FTSE within spitting distance of its 21-day moving average. I use this moving average as my top trend indicator and although it's a touch lower than a week ago it's too flat to assert a real trend.
So what that boils down to is that, from a charting point of view, the index could push back above the 21-day MAV and resume the upward path.
I'm not making a call on this one (the outcome will largely depend on the lunchtime coin toss), but with all the scarey talk around, it's worth just being aware that the bulls could be priming themselves for another run.
updated Nov 06, 2009
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