Mark Austin FTSE Trading Update - 22th Nov 2010

Good morning

The FTSE will open higher this morning after Ireland received confirmation of a bail out package from the EU. Good news? Yes but lets face it, another EU country has failed and begs the question of who is next..............

The recent correction fell shy of its 38.20% correction level.  This is not ideal and we could expect a further correction shortly.

We are probably in a Wave A from 5900 ended at 5651. We are currently in wave B which is taking the form of an abc.  I would expect this to reach 5820-5850 and then a final move down.

For the above scenario to remain valid I would not expect the FTSE to close above 5820 on 2 consecutive occasions. If we do I will conclude the rally is set to continue into the year end and we will position long.