The UK market remains, amazingly, trading in a region where oomph above 6,740 now points at 6,892 next with secondary 6,913 points. We use the word “amazingly” because, with the most generous will, it would be hard to describe the last few weeks as interesting.
It seems the market surged upward sufficiently to indicate the Brexit vote was actually viewed favourably, then everyone took a holiday, losing interest.
It would be true to suggest the banks and the miners have contributed strongly to the lack of any interesting movements recently, as many members of these sectors have failed to act on upward pressures or downward pressures.
The funny thing is, we generally expect August to be a bit (okay, a lot) boring, but for the markets to take a flat-line pill during the Scottish holiday period is just odd.
A situation still exists where a real uptrend has not appeared since the Brexit manipulated drop on 24 June, and we’re tending to suspect some excuse will make itself apparent for a drop, literally to define an uptrend.
Anything near term below 6,600 would raise an eyebrow as it injects weakness for 6,550 very neatly with secondary 6,482 points.
We would really prefer some sort of bounce to happen should 6,482 make an appearance. The danger if such a level breaks is of a sharp loss of a further 200 points or so.
SOURCE: Interactive Investor
