Given the year end rally in equity markets which extended into the New Year, the recent set back has only taken FTSE 100 back to where it was around the start of the year.
Consequently this has not dented the bullish trends in the moving average based indicators that I have been following for a while now. Thus the main larger and broader indices like FTSE 100, 350 and All Share are still as around 6% above their moving averages. The Mid 250 remains a slight laggard being only 5% above its average, while the rally in the Small Cap index has now left that index the most extended at 8.4% above its moving average.
The other economic indicators that I follow are also still supportive of a bullish trend for equities as the latest US Unemployment figures, which were out today, saw the rate tick up to 4.8% which is still below its moving average, which is positive in this case. While the US ISM indices for Manufacturing and Services are both still comfortably above 50 which also indicates an on going expansion.
So in conclusion the UK Market timing indicators are all still saying stay bullish / invested - so I say - keep calm and carry on compounding.