FTSE Index Archives - Page 4 of 4 - Elliott Wave Forecast

FTSE MIB Index – Bullish Extension Higher Started

May 15, 2018 By EWFSanjay

In this blog, we will have a look at a European index called FTSE MIB. It is the stock market index for the Borsa Italiana. Which is traded in Italy. It has a market capitalization of around 4 Trillion €. The index consists of the 40 most-traded stocks in Italy.

This index has a very interesting swing structure. Having a look at the chart below, you can see that the FTSE MIB has a 5 swing bullish sequence from 2012 low, targeting the areas of 26840 areas (Blue Box). This coincided with our bullishness in the European indices and globally after all. The main point I want to make out in this blog is the fact, that the Index broke already it’s 2018 peak. Opening now further bullish extension higher. It is the only Index which broke the January 2018 peak if you compare it to the DAX or FTSE100.

FTSE MIB Weekly Chart

With FTSE MIB breaking already the 2018 peak, it ended the correction from the 2016 move higher, which means that the 6 swing correction (March lows) is over and we should see more upside in the 7th swing. Keep in mind that the chart above is a weekly chart. Corrections in lower timeframes will obviously occur. Markets never move in one straight line, so we need to be aware of corrections.

FTSE MIB vs DAX

In the chart above you can see the FTSE MIB vs DAX. We can make out that the DAX is still missing the break above the 2018 January peak. But with the FTSE MIB breaking already its respective Jan. peak, we can assume that the correction against 2016 low in the DAX may also be completed. But for a confirmation of this view, the DAX itself needs to break the January peak.

FTSE MIB vs FTSE 100

In the chart above you can see the FTSE MIB vs FTSE100. You can see that the FTSE is also missing the break above the 2018 January peak. However, the difference between the DAX and the FTSE is that the U.K. Index is close to breaking the highs and with the FTSE MIB breaking already its respective Jan. peak, we can assume that the correction against 2016 low in the FTSE may also be completed. But like always for a confirmation of this view, better to wait for a break above January peak.

FTSE MIB vs S&P 500 E-Mini Futures

The last chart represents the FTSE MIB vs ES Futures. The American indices are clearly lagging in the move higher. If you compare the ES to the DAX or FTSE 100 you can make out the move higher is stronger in the European once, so when the European Indices starts their respective correction against the March 2018 lows. The American Indices should get sideways to lower. However, the right side remains to the upside in global indices. But like always, better to wait for a break above the January peak in ES too.

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FTSE Next Bullish Cycle May Have Started

May 9, 2018 By EWFEric

FTSE 5.8.2018 Video

FTSE Super Cycle Sequence

$ FTSE Index shows a 5 swing Primary degree sequence from 2009 low to 2018 high. A 5 swing is an incomplete sequence and needs to see at least another leg higher to end a 7 swing sequence. A 5 swing sequence is not the same as 5 waves impulse. Since the rally from 2009 low is corrective, the sequence of interest is 3-7-11 swing which applies to corrective structure. Corrective structure runs in 3-7-11 sequence which is based on the Lucas number.

$ FTSE started the sequence from 2009 low like most other World Indices. Up from there, $ FTSE rallied in 3 swing (corrective) and ended Primary degree swing #3 / Cycle degree swing #1 in 2015 high. The Index then corrects the rally from 2009 low. It ended the correction in Primary degree swing #4 / Cycle degree swing #2 on 2.2016 low. From 2016 low, we should see a similar rally equal in length to the rally from 2009 low to 2015 high.

With the break above 2015 peak, $FTSE is showing 5 swing sequence in Primary degree from 2009 low. Within corrective sequence, 5 swing is an incomplete sequence. FTSE therefore needs to see at least 1 more leg higher to finish 7 swing. Thus the question is not whether Indices are bullish or bearish. Based on the sequence, the right side is clear and it is Bullish. The question is whether FTSE has ended Primary degree swing #6 and whether the next Primary degree swing #7 has started.

4 Hour reaction looking impulsive

As the 4 hour chart above shows, the rally from 6867.06 low appears impulsive. As an alternate view, the 5 waves rally can be part of a FLAT from the lows at 2.9.2018. In this alternate view, the Index can then extend lower 1 more leg. However, due to how strong the rally is and how it almost breaks Primary degree cycle #5, an extension lower to the extreme 100% will just be a retest of the lows. It makes more sense to think that the correction and thus Primary degree cycle #6 has ended instead at 6867.06

If that’s indeed the case, we expect all World Indices to make new all time highs and $FTSE can be leading the turn higher. We keep recommending members of www.Elliottwave-forecast.com not to sell the World Indices, but waiting for opportunities to get into a Multi year bullish cycle. The Following blog was done in early February 2018: https://elliottwave-forecast.com/stock-market/what-will-happen-to-world-indices-2020-2022/ and we show our view of another continuation higher. We believe in The Right Side and we have no doubt there’s more upside in the World Indices.

FTSE Showing Impulse Elliott Wave Structure

May 8, 2018 By Hassan Sheikh

FTSE short-term Elliott Wave view suggests that the decline to 3/26/2018 low 6866.94 ended the cycle degree wave “b”. Above from there, the index is rallying higher in a strong Impulse Elliott Wave structure with extension in the 3rd wave. It’s important to note that an impulse structure should have internal subdivision of lesser degree 5 waves impulse. In the case of FTSE, Minor wave 1, 3 and 5 should have internal subdivision of 5 waves impulse Elliott Wave structure of lesser degree.

Up from 6866.94 low, Minor wave 1 ended in 5 waves structure at 7042.37 and Minor wave 2 pullback ended at 6923.33 low. Above from there, Minor wave 3 remains in progress with extensions in another 5 waves structure where Minute wave ((i)) ended at 7109.93, Minute wave ((ii)) ended at 6971.75, Minute wave ((iii)) ended at 7572.98 high, and Minute wave ((iv)) ended at 7492.73 low.

Near-term, while above 7492.73 low, Minute wave ((v)) of 3 remains in progress looking to extend higher in another 5 waves structure approximately towards 7593.27 – 7625.36 inverse 1.236%-1.618% Fibonacci extension area of Minute wave ((iv)). But in case of extension in Minute wave ((v)), FTSE can extend higher to 7659.32-7701.40 100%-123.6% Fibonacci extension area of Minute wave ((i)) before ending the Minor wave 3. Afterwards, the index should pullback in Minor wave 4 in 3, 7 or 11 swings before further upside is seen. We don’ like selling it.