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Will resistance hold at 6980?
Well, the FTSE has returned to its recent highs, though it's taken its time about it. I've closed my last bet for a 217 point profit and opened a down bet on the assumption that the resistance at 6,980 will prove insurmountable for now. The index stayed below the 20-day moving average for seven days which is considerably longer than in any previous instance of my peak pattern so there is significant doubt about whether this instance is still intact. It is very difficult to predict how big the third dip will be (if my pattern holds), but I wouldn't be surprised to see something similar to the previous one. I will just have to watch the FTSE closely in the coming days and play it by ear though.
The budget seems to have been fairly uneventful with no significant features for the investor, apart from generally being seen as Tory voter friendly, which the markets generally like. The Federal Reserve's Open Market Committee statement was also quite neutral, with still no definitive timing for interest rate rises. The markets rose strongly yesterday at the lack of nasty surprises, but I don't think there is anything to sustain a rally here.
