Tuesday, 27 July 2010

Strength In Asset Markets Likely Over Soon

The forecast made in the beginning of July, of a multi-week, 7-8% bounce in risk and related assets, has come to pass.

I believe that this strength is likely to be over soon, with a potential for sustained weakness beyond June/July lows.

Below is a daily chart of the FTSE100 index (London). For various reasons, I believe this chart to offer one of the cleanest "counts", where the most plausible outcome is sustained weakness from current levels.

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