Two options for the FTSE 100 and Dow Jones

TL;DR

The analysis suggests that the Footsie may experience a sharp decline in wave 3 after a potential brief rally to the 50% mark.

Transcript

hello it's John Burford with chart of the week for Monday the 27th of April and I'm covering footsie again here because I feel we're poised for a major leg down this is the the daily chart or the foot seat and you see the corona crash down here that is my wave one it actually occurred on a pretty good momentum divergence and that was a signal for a... Read More

Key Insights

• 👋 The analysis suggests that the Footsie may experience a major leg down in wave 3.
• 💋 A potential rally to the 50% mark before wave 3 is also a possibility.
• 🥰 The lack of a V-shaped recovery indicates that the rally is losing strength.
• 💹 The Dow chart supports the analysis of the Footsie.
• 🧔 Volume analysis on the SNP chart confirms the weakening rally and indicates a bear market.
• 🖐️ Fibonacci levels play a significant role in market movements.
• ❓ The corona crash significantly impacted stock markets globally.

Questions & Answers

Q: What are the two main options for the Footsie according to the analysis?

The two options are a move down in wave 3 or a potential rally to the 50% mark before wave 3 starts.

Q: What is a V-shaped recovery, and why is it not expected in this case?

A V-shaped recovery is a rapid bounce back after a decline. It is not expected because the stock market's rally is weakening, and the lack of a V-shaped recovery suggests that it won't occur.

Q: How does the Dow chart support the analysis of the Footsie?

The Dow chart shows similar patterns to the Footsie, with wave 1 decline and wave 2 recovery. This supports the expectation of a sharp decline in wave 3 for the Footsie.

Q: What does the volume analysis of the SNP chart indicate?

The volume analysis shows that the volume significantly increased during the crash but has been contracting sharply during the rally. This suggests that the market is in a bearish trend.

Summary & Key Takeaways

• The daily chart of the Footsie shows a wave 1 decline, followed by an ABC recovery labeled as wave 2.

• Two main options for the Footsie are a move down in wave 3 or a potential rally to the 50% mark before wave 3 begins.

• The lack of a V-shaped recovery and weakening rally momentum indicate that the stock market is experiencing a bear market.