RichardNixonFTSE is forming a big broadening top and it has been...

RichardNixon

FTSE is forming a big broadening top and it has been the most reliable of patterns for some time.

It suggests that 5000 is just half way the the bottom as a rough guide. So at the moment that is 4400 on a measured move.

That 5000 base line usually breaks one of two ways. Either it bounces off the base and then breaks down or it breaks down, bounces back to the base and then heads down seriously.

Of course if it bounces at 5000 then it is hard to know whether the bounce is small or large and of course it is even possible to make a new high and keeps the patttern intact for a later break with an even deeper target on the downside.

I must admit there are some very disturbing monthly and weekly charts out there as of yesterday, although daily is getting stretched. DMI for example is extremely wide.

Talking about half way to targets, I note that SPI 4483 would be half way to my 4020 target.

Finally a mea culpa about mentioning WOW here a while back as looking good on a long term basis. I admit to not being as confident as I was although haven't given up hope yet as I did see some room to go lower if still basing.

Of course it is all Wink's fault as he came out with a sell signal last weekend and that spooked the stock.

Seriously, well done Wink, and Voltaire can go stand in the corner with his face to the wall until recess.