These charts with all the annotations become very messy very quickly and , for those that are not really interested in the finer points of EW, rather annoying as well. It helps a little if you click on them to enlarge them. The “executive summary” reads as follows;
The FTSE is near completion of the first two legs, A and B, of a multi year “flat”. Once complete wave C should follow and take the index below the low of A. The high point of B is typically found where sub waves a and c are equal in magnitude. This should occur in close proximity to the starting point of A – that is why the whole thing is called a flat!. Essentially that is at the double-top level. Wave B itself should have a 5-3-5 structure and certainly wave c of B must subdivide into 5 waves.
In the detailed chart which does not show the entire c of B leg due to the 3 year limit, wave 3 is the extended wave and 4 a triangle. There are numerous variations but they all boil down to the simple fact that wave 5 starts at one of the 3 low points since October of last year. Again, typically, when the 3d wave extends there is a tendency towards equality between waves 5 and 1 (blue arrow). RSI and MACD are also turning so EVERYTHING suggests a top, soon.
The one and only, remotely possible alternative bullish interpretation would be that this is not a B-wave and instead it is a 5th wave of the bull that is forming a wedge. That is extremely improbable and in any event does not project all that much higher (7400 maybe)!. Below is an example of what a wedge would look like;
