FTSE

FTSE closed down for the quarter ended June. The high was very close to 7550, where the entire rise from 2009 is 123.6% of the 2007-2009 bear market. So it is within the territory of a wave B structure. It also touched the parallel channel of the lows from point Y to Z. The rally in the FTSE is also a series of corrective patterns. I did think we were done at wave Y high. The rise from 20016 lows was marked as A-B-C and that has not changed. What went wrong was it did not end at C=A. C is now a 5 wave pattern at the end. This week the FTSE broke down to close below the blue [2-4] trendline breaking a key support and indicating a trend reversal. A move below the recent low of 7302.71 would further confirm the start of the next wave of selling in Britain.