FT100 & SPI200 to turn South?

Hi Traders,

Both the British FT 100 index (now at 7620) and the Australian SPI 200 index futures (now at 6230) might be aiming for a correction.


ELLIOTT WAVES

The fundamentals for this turnaround seem to be exclusively political for both countries but, on the technical side, the two indices might head to a similar destiny despite a different wave count.

FT 100 index

The daily and 4-hours charts show the completion of wave four. A drop to the 7280 area might follow soon to make room for wave five.

The weekly and monthly charts display the completion of five waves up, signalling a top and the end of a major wave count. A correction should follow. 

Finally, the weekly  chart reveals 4-5 doji candles. This is called "breakaway pattern". It's a continuation pattern aiming to continue the downtrend initiated after the top at 7884.6   

SPI 200 index futures

The SPI 200 (now at 6230) could still end its course around 6330 - see the top blue line in the monthly chart. In meantime, a correction might be under way. 

The daily and 4-hours charts show the completion of five waves as well as a dangerous double top. A drop to the 6098 or 6076 area might occur.

The monthly and the weekly chart shows that the huge a-b-c might not be completed yet and this correction might be only temporary. 


FT 100 CHARTS


FT 100 - Monthly chart, click to enlarge

FT 100 - Weekly chart, click to enlarge

FT 100 - Daily chart, click to enlarge

FT 100 - 4-hours chart, click to enlarge

SPI 200 CHARTS




SPI 200 - Monthly chart, click to enlarge

SPI 200 - Weekly chart, click to enlarge

SPI 200 - Daily chart, click to enlarge

SPI 200 - 4-hours chart, click to enlarge