Given the recent recovery in markets these have now moved back into positive territory by around 1% for the headline FTSE 100 , FTSE 350 & FTSE All Share Indices. While down the size scale it is a more mixed picture with the FTSE Small Cap being about 2% above its 10 month moving average but the normally strong FTSE Mid 250 Index remains just below its moving average.
It remains to be seen if this is another false positive which leads to a whipsaw or if the more positive recent trend can be sustained. I have to say things feel pretty choppy out there with seemingly an increased number of profits warnings and downgraded expectations. However, the other measure I have started using in conjunction with these indicators, the US unemployment rate, remain just below its moving average, which is supportive in this case and would suggest remaining invested for now.
So make of that what you will but I would suggest being careful out there as it feels a bit dangerous right now, although there are always opportunities nevertheless in individual stocks. On the technical front for FTSE it seems like it is evenly poised tug of war between bulls and bears right now. As you can see in the price chart below there seems to be some support and the moving averages at around 6200 and resistance at around 6400. It will therefore be interesting to watch for a decisive break of either of those levels to tell which way the short term trend may take us next, but it is nearly May when the old saying says you should sell and go away - which sounds quite tempting to me this year.