Waves, Patterns & Projections (2004)

As to FTSE......well it has clearly started a period of under-performance and, IMO, this is set to continue over the next 18 months or so with Growth likely to be poor in comparison to the Far East and America.

What we will probably see now is a multi-leg correction similar to that which befell America through much of 2004 (i.e. the four leg correction from 10754 to 9708 for (09.73%)). Note that the largest Leg Down for DOW in the 2004 correction was the first @ (06.94%) which lasted 24 days (10754:10008) as compared to the (06.96%) over 14 days already accrued by FTSE.

Personally, I now think early next week is going to be the turn period and, whilst FTSE may shave down another 40-50 points (possibly lowering 5100 in the process) and DOW may still lower 10157 early in the week and NAS may test the prospective new base of 2026, I think markets will thereafter go Up.

In the case of FTSE, it may best be guided by what happened to DOW following the first of its corrective Down legs in 2004.......basically the recovery rally lasted 9 days and picked up 75.47% of the initial Down leg's losses i.e. 10754:10008:10571.

Consequently, my projection for FTSE is c5097 early next week giving a Leg 1 corrective decline of c(07.58%) followed by a c75.00% recovery rally back to c5410 (the duration for which is difficult to estimate).