Looking for a Break-out Again!

The spike back to just below recent highs last week is suggestive that the dip I forecast in my last post will not materialize. Today’s level of 6,700 will probably be as low as the FTSE goes and it’s back to plan A – the break out to a new all-time high. The markets seem to be shrugging off bad news on the back of cheap credit which is still boosting the stock market. If the FTSE can finally break through 7,000, my initial target would be 8,500. If this turns out to be the final blow-off phase of the rally though, then I think 10,000 is on the cards within 6-8 months. The FTSE looks to have been consolidating recently (it is only up about 15% in the last three years) and a good surge would be in order after this.