The FTSE has bounced back most of the way to its recent high and I have to admit that I got rather carried away with the conspirators’ prediction of the FTSE down to 5000! The Dow only dipped about 5% on the tapering wobble and now seems quite at ease with the idea. I don’t see much impetus for either index to go much higher in the immediate future though, and expect the FTSE to be range bound for some time between 6000 and 6800. I think we may see another of my peak patterns in the next couple of months. This, however, is what the conspirators are suggesting, so I won’t be surprised to be proved wrong.
Once the issue of the timing of QE tapering is resolved the US market can get back to focussing on the recovery and making further upward progress.