No FTSE peak signal this time

There was no bounce in the FTSE back to the 20 day moving average and, as I said, I am not really surprised about that as it was what the conspirators had suggested as well. I do still think the FTSE is on its way back to 6000 though and may well stay range-bound between 6000 and 6800 for some time, as I previously predicted. The uncertainty over the timing of the QE taper will prevent any further ground being made and there is also more doubt about Greece and its need for another bailout upsetting things on this side of the pond.

MoneyWeek are strongly pushing their doom and gloom predictions again and, though I have considerable sympathy for their position, I still feel it could be some time before the debt crisis finally blows up. When it eventually does, I agree with them that we could see very big falls in most markets.