Could the FTSE Be Shaping up for a Crash?

I had said that I expected the FTSE to fall along the lines of the Aug 1991 or Jan 1994 declines after it peaked at the beginning of March, but it hasn’t really followed those instances closely enough for me to feel comfortable that that is what is happening. Although I have made money trading the down legs, I am now out of the market as I was looking for an upturn of 5 or 10 points on Thursday which didn’t happen. A kink like that is common about halfway down a down leg, but when the FTSE closed half a point down I decided to close my positions as that was more suggestive of a bottom. I have been looking for an alternative analysis and am now viewing the lead up to the 1987 crash as a more likely scenario for the current chart:

If the FTSE continues to rise to the 20 day moving average (the green line), goes sideways for a while, then bounces back to 6490 I think there will be a good case to make for another crash. Meanwhile, across the pond, the Dow has declined this week, but this is its first pullback for two months, so it is due one, and I still think it is on course for 15,000. This would probably drag the FTSE back to the level I have suggested. I remain of the view that the Western world is bankrupt and when the market wakes up to this fact it will be time to retire to my bunker!