...as at the end of January 2015. As regular readers will know this is something I have been following for UK markets for a while. If you are a new reader then you can read some of my previous posts here which cover some of the background to these moving average based indicators.
These have all now turned bullish across the board from Small cap to FTSE as markets were generally positive in January with the All share for example producing a 2.6% total return. This however demonstrates the problem with these type of indicators when the market has been thrashing around as it has recently causing these indicators to turn bearish twice and bullish twice in the last five months.
This volatility can be seen in the chart below and the previous peak of FTSE around 6900 from 1999 / 2000 and 2007 / 2008 still seems to be acting as stiff resistance. Thus although we are close to highs and European QE should be bullish for financial markets I find it hard to feel that bullish, but then they do say bull markets climb a wall of worries so I guess time will tell.
Finally, talking of volatility, which I have discussed in the past as a good indicator of the level of fear in the market. I came across recently a UK version of this, which I had not previously been aware of, which can be found under the ticker VFTSE and is listed in Amsterdam. This has unsurprisingly picked up a bit recently to close January at 16.44 having had a 52 week range of 7.51 to 36.32 (source:yahoo) and can be found there or on google finance here.