FTSE to lead the way

The markets broke down in the early hours and then pulled back strongly to close the day marginally down(DOW) and marginally up(India). However the FTSE was down almt 1.4%. Increasingly we feel that the FTSE will be the index to watch.

With today's close, the FTSE closed below 50EDA and that raises a strong red flag. However we have veen bearish for a while and the markets have moved abt 2-3% since then. So we will keep our short positions light and watch what the markets have in store.

Attached below is the 'MAGIC numbers' on the FTSE chart. If the numbers fit well, then we have already seen the top and the bear is tightening its grip on the index. If FTSE breaks, the rest should follow soon.