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.
The wave count we are most probably in is 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.
Day Trading Opportunities
I have some signals indicating a move to 5750 shortly after the open. I will use a break of the 1st 5 min candle bar to confirm this. The stop will be the high of the 1st 5 min candle bar. I will send SMS's to manage all of this for you.
Swing Trading Opportunities
Long positions from 5720 and below. Stop 5683. Target 5820
