FTSE Outlook for 16th Jan 2009

In the previous FTSE post, I mentioned the possibility of the fall on FTSE continuing till we touched 4076-4093. The index today put in a low of 4090.87. It could well be ready for a bounce. The only thing that worries me slightly is that we are so close to touching the 270 degree line of 4049. Makes we wonder if we will see price pulled down to that level before a bounce does occur.

DOW having put in a bounce today, the likelihood of FTSE rising tomorrow is rather high. It would make sense for me to look for longs tomorrow, getting in on retracements. However, the rule "Trade what you see and not what you think" will still be firmly in my mind!