FTSE 14th Sep 2007

As the problem with Northern Rock continues, FTSE continues to bleed.  From today's action it is clear a new downward channel at a rather sharpish angle has been established.  Unless the market picks up (thanks to the strong assurances given by the Chancellor over the safety of deposits with Northern Rock), further downside is probably on the cards.

PT Signals for tomorrow do seem to suggest upside.  Except for one signal, the majority are bullish.

(1) Low Range Close
(2) 2 Day ROC Buy
(3) Momentum Pinball Buy
(4) High Breakout Setup

Astonishingly, the Range Projection technique worked quite well and the low of the day exceeded the projected low by about 3-4 points.  Here are  the projection/actual:

Projected High: 6,326.59      Projected Low: 6,171.79
Actual High     : 6,289.29            Actual Low: 6,168.00
                            (-37.29)                                  (3.79)

And for tomorrow the projected range is:

Possible High: 6,236.04 (53.25 points)
Possible Low : 6,114.75 (68.04 points)

And finally, a look at the EOD chart for FTSE: