2 important points here
1. we have registered a lower high based on news of Greece defaulting over weekend and EURO started to slide = fundamental concerns
2. we have H&S formation .......one must know that a H&S at the bottom of the market has a 50% success rate, not as high as being at top of market. Therefore one must be wary of a reversal ......
FTSE 100 Weekly chart = bear flag
provided the FTSE 100 < 5300 which is the 200 MA =respected by every fund manager
200 MA = line in the sand
if we get weekly close > 5300 = bull market and H&S failed and bear flag failed = short squeeze ....This will mainly be due to QE 3 being announced/or some sort of stimulus
if < 5300 = bear flag in play and H&S kicks in .......
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