Elliottician and TA Thread

andonis re 2118,

if the ftse were to drop below the 4500 level, it could quite simply be an overshoot, before correcting, the same as we get on the way up.

chestnuts/vis, re 2120 etc,

if the price of oil stays too high for too long or goes higher still, then although the oil plays will remain high, the rest of the market will suffer the longer it continues.....ie transport profits will be hit, passed on to retailers etc etc, if power generation costs more, gets passed on to joe blogs consumer....all this leads to inflation, which in turn precipitates government intervention thro the pressure on banks to adjust interest rates, which inhibits their profits (and banks make up the other high percentage of the ftse)causing a potential nasty spiral.
Long term, my novice opinion would be inclined to think that high oil prices will put a dampener on earnings across the broader market...it just hasnt had time to bite just yet.
In the meantime....lets all enjoy our oil plays !

:o)