Here's the Dow futures 4 hour chart showing a wave count for what I believe to be the 5th wave up in the sequence from June 2012. This covers the period from the cash chart trendline bounce in the last blog update.The wave 2 has a 50% retrace (it was a lot less on the cash chart as it often is for futures corrective waves) and the spike up to the main downtrend resulted in a perfect 61.8% retracement to from what I think is wave ii of 3 in  this sequence.This makes sense from a logic point of view since the next wave, iii of 3, ought to be the most powerful and that would coincide with a trendline break from which we'd expect a strong move anyway. I would expect overnight futures tonight to go no lower than 15040 of this is to play out and that level...

Another index doji on the Dow Jones yesterday as it was sandwiched perfectly between the 15340 resistance and the last breakout point of 15262.This should now go on to new highs but it will be volatile so beware and a correction is due shortly thereafter too. Original link...

After a bounce around the 61.8% Fib area, FRR has found resistance in the strong 1.03 area which has proved problematic in the recent past from previous price resistance and also the backtest of the short term trendine break.It needs to break back above that short term trendline soon in order to have any chance of continuing upward and even then there's the tough resistance shown by the circled area where a clear sell signal was given in the form of an exhaustion gap up, a bearish day and then a gap down the following day. It's actually similar to the pattern GKP formed at 450 but with the added gap down on the following day.For now, though, the SP and RSI are both in No-Man's-Land. Given the reaction to 1.03p, I'd expect at least another test of the lower trendline and it may even return to fill the gap...

Today was a huge day in the FTSE breezing past two levels of resistance in one go and maintaining those breakout be close of day.There is often a drop to 50% of the way down a large marubozu like this but sometimes the market is so bullish it just keeps on going. The US was closed today so there may be some catching up do do Stateside. We'll just have to wait and see but the bulls are firmly in control of this currently. Original link...

FTSE formed a continuation doji yesterday with a perfect backtest of the previous breakout point at 6476. Clearly, this has followed through in overnight future following the FOMC minutes and Bernanke's speech. Should eventually continue on to new highs from here but expect volatility. Original link...