Mark Austin FTSE Trading Update - 9 Feb 2011

Good morning

The FTSE closed yesterday's session on a new yearly high. Positive action for the bulls.

We have clear impulsive action up from 5815 which signals higher prices longer term (possibly 6500) . In the short term we have 5 waves up, bearish divergence on the MACD (see chart) and resistance running from December at 6100, so the odds of a correction coming in shortly are increasing. Target 5900.

The S&P and Dow have also completed major patterns so if these markets turn down they will drag the FTSE as well.

Whilst we await a clear reversal signal we can trade the intra day price action as we see it.