Written 20 May 2018 22:42
Dow & FTSE markets for this week (FTSE:UKX)
This year, the Dow Jones experienced an “all time high” back in January. By an amazing co-incidence, the FTSE (UKX) matched this accomplishment and in the period since, has even raised the bar.
The Dow hasn’t. What does it all mean?
Regular readers will remember our 7,725 ambition for the FTSE, along with a suspicion the market could find it easy to better such a point, finding itself challenging prior highs.
Last week, it reached 7,791.4 points, virtually identical to January’s 7,792 point pinnacle.
Perhaps more importantly, the FTSE did actually close the session on the 17th at 7,789 points, an all time high closing price.
To us, this is quite a big deal, meaning now above 7,792 and we’ll anticipate 7,855 next with secondary, when bettered, at 7,990 points.
We’re not entirely sold on the concept of further growth – just yet – as a heck of a lot of punters will view the chart below, assume “double top”, collecting some profit in the process and doubtless allowing some sort of relaxation.
Balancing the threat of some negativity on the FTSE to 7,720 before we start raising eyebrows is the Dow Jones.
For some reason, Interactive Investor’s chart provider gives scaling which requires multiplied by three before it makes sense.
However, the reality is the index need only better 25,000 points to commence a cycle to 25,520 next. And if bettered, secondary comes in at 26,250 points.
Interestingly, this will give – as near as soddit – the Dow Jones its own double top, meaning near term reversal on the FTSE is liable to be short lived until such time the Dow matches its own prior highs. At this point, some proper