Bullish Market Sentiment ‘Unconvincing’

LONDON - The FTSE’s positive momentum will not be maintained and any move below 4,300 could spark a substantial sell-off - and the market may not have to wait too long before it happens, says David Jones, Chief Market Strategist at spread betting company IG Index.

In today’s Charts of the Week programme on www.cantos.com, David says that while the market has staged an impressive rally since coming off March lows, he’s not convinced this can be sustained. He points to 4,700 as being a “big line in the sand” for FTSE.

“Until we see it break through that level I think the risk is any rallies are just bear market rallies, impressive as they’ve been, such as the one we’re in at the moment.”

On a more positive note he believes there are signs that two important sectors - retail and mining - are showing signs of a more sustainable recovery. The miners have formed a base on which to build after last year’s sell-off went too far, while recent bullish moves in the retail sector look to be more convincing than some of the false dawns over the last 18 months.

The presentation is available now w3.cantos.com/charts and from our page on iTunes. The weekly Charts of the Week programme features technical analysis of markets, stocks and currencies.

It’s free to view. All you need to do is register at www.cantos.com. Cantos.com, the online financial broadcaster, features in-depth interviews, documentaries and webcasts with senior company executives. If you would like to contact us, please email enquiries@cantos.com or phone +44-207-936-1333.

Source: Cantos Communications Limited

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