UKX

This chart looks almost scary – look at the big hump that topped its highest level before the turn of the millennium, scoring an all-time high on 30 December 1999 at 6,930.20. Then look at the plunge to below 3,400 at the bottom of the bear market in 2003. After that, it’s been a steady and merry ride upwards. Just weeks ago we were talking about breaking through the 7,000 and look at us now, so worried about what’s around the corner. Surely we have bounced back above the infamous 6,000 level. Call me crazy but I think it might be time to sell. It’s just two months ago that we approached the all-time high. Then the index broke through the 6,700 and all the nervousness, arguably justified, might suggest the sudden selling that has driven the Footsie so close to breaking the 6,000 mark could yet make a more vigorous attempt to do so again in the next few weeks.

ACTION SELL FTSE 100 • Target 5,950 • Stop loss 6,350

TIME TARGET 3 WEEKS