The media has had a hay day for months, over the “Brexit” vote in Europe. They have done a great job of concerning people in Europe and around the world. Could Brexit and Y2K both end up scaring people/investors, yet it end up being not too big of an event?
The Power of the Pattern in London, might be suggesting that conditions look to be bullish for London and maybe rest of the worlds stock markets. Below looks at the pattern of the FTSE in London.
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The FTSE 100 Index (London) has been weaker than the S&P 500 over the past year.
Over the past few months, the FTSE could be forming a bullish reversal pattern, inverse head & shoulders pattern, just above 6-year rising channel support line (A).
If this pattern read is correct and the FTSE would happen to breakout above the neckline at (1), the price action would suggest “Risk On” in London and maybe other key European markets. For the pattern to be bullish for London, its a must that resistance gets taken out!
Does Brexit and Y2K have something in common, too much fear? If an upside breakout takes place at (1), a ton of fear could be unwound.
Europe should be concerned not about Brexit, they should be concerned should rising support line (A) get taken out. If that would happen, it would reflect that the current 6-year trend of higher lows and higher highs, would be broken.