Mark Austin FTSE Trading Update - 14 Feb 2011

Good morning

From a price action perspective the outlook for the FTSE looks very positive. The index failed to gain acceptance under 6000, we had a positive outside day on Friday (the market made a new low and new high when compared to the previous day but closed higher) we closed over major resistance (6055) and the weekly chart closed in a strong position.

From an Elliott wave perspective we are currently in an ABC correction. The A wave completed at 5970 and we are currently in the B up. This would allow for a top over 6100 before a final decline to 5900. This would tie in with the American markets completing a major wave count and currently making new highs. We have expiry at the end of the week so its possible this could be a turning point.

Whilst we wait for signals that a top is in place we do not want to be positioning short until price is accepted under 6055. Especially given the positive price action we are seeing.