FTSE Outlook 6th Jan 2009

Having donned my bear cap, I was not disappointed to see FTSE going down quite nicely though it did put on a rise at the open. However, the downside was not good enough and in the end, FTSE managed to close up for the day. Most of my spread-betting points came from shorting the index though a few came from going long.

As for Tuesday, I'm still bearish. I am hoping for some decent downside. On the chart, I've highlighted a couple of points. The apex of the shaded triangle is the spot where a reversal often takes place. This is likely to be tomorrow or Wednesday. If we do not get the expected reversal, chances are the index will try to rise and perhaps hit the red diagonal before descending. There is also the possibility of a double-top in the vicinity of 4639.