Just four days ago we showed the FTSE and commented that there were three possible triangles in this structure from the lows of March 2009, and that the whole thing definitely had all the characteristics of a B-wave. In the new Elliott Wave Financial Forecast that came out yesterday this was about the only chart evidence that the boys from Gainesville offered to “prove” their argument that we had topped. Neither they or I often use the Footsie as a beacon for the rest of the equities and the fact that the top actually occurred on the 22 of May, now more than a month ago, makes it a less likely coincidence. Anyway, I will enjoy the flattery.

See our most recent blog on the FTSE. The argument was that 6000 would be critical. As it happens the index’s slide of almost 13% in a single month found a bottom and regained it regained its  composure, for the moment at least. The drop is a rather clear 5 wave move so a rebound is not that surprising. After an a-b-c wave 2 to about 6400/6500 the slide down should resume. The 5 wave initial move is clear in the FTSE but not in all indices so this interpretation could be incorrect. The DAX has an equally clear initial 5 waves down, but the DOW looks more like a corrective a-b-c! see below;