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London Stocks Turn Bullish

Published 01/18/2012, 05:44 AM
Updated 07/09/2023, 06:31 AM
BIG
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SMLL
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In the face of toxic sentiment and downgrades galore a bullish condition is building in the London Stock Market

UK Equity Markets & Three Big Days A change in trend? It is certainly looking that way. We have had three big days in the "back end of the UK market". This has been the strongest three day rally since the start of September - definitely out of character behavior! The 50 day moving average has been broken and it looks like the 100 day is about to be breached. Moves above/below the 100 day MA need to be given careful consideration because once this level is broken the FTSE Fledgling Index tends to say above/below the 100 day MA for extended periods of time. Incidentally the FTSE Small Cap index has already moved above its 100 day MA.

FTSE Fledgling Index
Chart - 1
The London Stock Market is still the 2nd most important stock exchange in the world. What happens beneath the scenes here is echoed by what is going on beneath the scenes in the US. Expect more upside in stocks over the coming weeks.

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