FTSE Resistance

A good friend that i analyse/trade with has provided this diagram.

The 9am candle seems crucial here as to whether we're going up or down. If the new candle starts above, he bulls might well be in business, below and the bears take over the driving seat

FTSE Analysis

With the way the FTSE has opened, i just dont feel comfortable going short, its not that weak. Also with the Dow making a new high im thinking we could be on the edge of a big wave 3 up and being long is with the main trend at the moment. Lloyds is also holding up pretty well considering

30min MACD histogram is going to want up very soon and so are the lower indicators. 1hr stots have turned up too

LIVE TRADE

Long FTSE Dec 5326

Analysis as to why follows shortly

Lloyds TSB

Have announced they're selling shares at 37p inthe biggesy UK rights issue to raise some badly needed funds. Price closed ay 97p yesterday, man thats not going to be nice on the share price!

http://news.bbc.co.uk/1/hi/business/8375630.stm

AUD/USD - Timber!

Well there you have it, the contracting well and truly broke, should believe in my analysis a bit more. Asia was weaker overnight which helped

FTSE Analysis

Well i wish i held that long i had from Friday night, banked way too early but cant complain, profit is profit. The wave B i had going didnt retrace the whole of wave A and in fact the closing candle finished bang on the 61.8 retrace. So that count is still valid and looks a pretty good expanding flat. In fact only the DJIA made a new high while the rest of the indices did not.

Normally i look for the MACD histogram for clues on the 2 4 and 8hr charts and currently theyre all not very conclusive so will step aside and let the market do its thing. If the expanded flat was valid, its got to collapse pretty soonish as the next wave would be a C down of wave 2

AUD/USD Analysis

Well the contracting broke but its not convincing as normally there's a bigger tank afterwards in theory. In EWT, ending diagonals such as these appear in Wave 5 or Wave C positions. If we are gonna get a bigger retrace, you would count that as a C wave, but im in 2 minds as to whether this will happen. Reason being the indices have either done 5 up or we have had an extended 3rd which means this small retrace was a 4th before we have one more up for a 5th.

The ending diagonal could be the clue though for a drop as its also turned on 61.8fib. Throughout this Primary wave 2 rise the dollar has weakened and the indices risen. The USD currency pairs are giving mixed signals as to whether this has topped with pairs such as EUR/USD not making new highs whereas the indices have.