The FTSE is still going sideways, but a pattern has just emerged in the chart which suggests that it is likely to break through 6400 temporarily before we get the dip I was looking for in my last post. The three small dips (one just above the 20-day moving average followed by two just below) in the last two weeks form a pattern which indicates that the next upward movement on the index will be the last for this rally. I have seen this pattern about eight times in the last twenty-five years and it has been one-hundred percent reliable in that time. I cannot say how big the last move will be, but I am betting that with the Dow so close to its all-time high of 14,165, it will break through it and take the FTSE above 6400 in doing so. Then we should see the downturn that I predicted previously.
