Mark Austin FTSE Service Update - 22nd Oct 2010

 Good morning

The FTSE remains above 5700 so technically we can assume we are heading for a double top scenario (5833). The market sentiment also remains very bullish but for how long? The market will only support buying stocks at high prices for so long. Once all the government stimulus news has been digested there will be little to support these markets and a correction is inevitable.

I did highlight several weeks ago that when everyone expects an event it rarely come to fruition. In this case the double top could simply collapse and a wave of selling come in. For this reason I deem it appropriate to step aside until the market reveals its next move. If the selling starts there will be plenty of opportunities to enter. Likewise if we get one last powerful move to the upside we have a low risk shorting opportunity.