I wonder if we are about to see some sort of double top scenario in the FTSE 100 similar to that seen in the summer of 2007. If this is an inverse head and shoulders on the current chart (see below), we have a target of c 5,800, very close to the high seen in March/April 2010. The current slow stochastic is sky high having moved up from the recent oversold level and see that in the current rally the market has managed to close above its weighted 200 day moving average. It did this in 2007, formed the double top then moved back down, helped by a collapsing Northern Rock and a general log jam in the global financial system.
This has been an impressive thrust but has it exhausted the bulls or is there more left to go? Worth keeping an eye on and I guess we'll find out soon enough!
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