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Weekly Bulletin: Equity rally continues
29 Feb 2016
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29 Feb 2016
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26 Feb 2016
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26 Feb 2016
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25 Feb 2016
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25 Feb 2016
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24 Feb 2016
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24 Feb 2016
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23 Feb 2016
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23 Feb 2016
Sterling dumps on Brexit fears
22 Feb 2016
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22 Feb 2016
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19 Feb 2016
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18 Feb 2016
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18 Feb 2016
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17 Feb 2016
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17 Feb 2016
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16 Feb 2016
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16 Feb 2016
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15 Feb 2016
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15 Feb 2016
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12 Feb 2016
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12 Feb 2016
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11 Feb 2016
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11 Feb 2016
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10 Feb 2016
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10 Feb 2016
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09 Feb 2016
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09 Feb 2016
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08 Feb 2016
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08 Feb 2016
February: Non Farm Payrolls Out Today
05 Feb 2016
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05 Feb 2016
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05 Feb 2016
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04 Feb 2016
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04 Feb 2016
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03 Feb 2016
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03 Feb 2016
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02 Feb 2016
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02 Feb 2016
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01 Feb 2016
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01 Feb 2016
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Here’s a chart of the UK100 (FTSE) with the post-crisis QE-driven rally in all its glory.

      
The March 2009 intra-day low came in at 3,457 and the multi-year high of 7,129 was hit in April last year. The index has struggled since then and is currently trading around 18% off its peak. This compares with the S&P 500 which has lost just over 11% since hitting its all-time high in May last year. The UK index has had a difficult time due to the heavy weightings towards miners, oil and bank stocks. So the big question now is whether the worst is over or if the selling will continue.
  
This time last week the index broke below the 38.2% Fibonacci Retracement of its March 2009-April 2015 rally. It is back above here today but it has a long way to go before it starts to bother the 23.6% retracement at 6,265.
  
In the 4-hour chart below I’ve stuck a Pitchfork on the most recent high-low-high formation. We’ll see if the FTSE manages to break above the upper resistance line this week.
  


 
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Posted by David Morrison

Category: PM Bulletin


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