Better known as the FTSE 100 index, this is the barometer of the British economy as the S&P 500 index is to the US economy. If you are going to take one measure of the health of an economy the major indices of that economy are a fine place because they aggregate the major participants and competitors within an economic union or nation and give a composite picture of overall performance. It is a singular statistic for a huge amount of activity and an aggregation of a large amount of traders and market sentiment about that activity. So yes, it is highly generalized. That is the nature of summary statistics. The chart of the FTSE (pronounced: foot see) shows a very steep and continuous climb on the hourly dating back since Friday. That’s a lot of up hours. And one of our principal techniques of analysis is trend following, due to the curious but undeniable fact that trends in market prices have a strong tendency to continue, they don’t do so forever. In fact they “correct”, meaning that they take temporary reversal in their paths to allow profits to be taken from the run up (or run down) and allow new traders to enter at advantageous price levels. This is precisely the point we are at with the FTSE this morning. Rising 6.88 per cent since Friday, price has fallen back .79 per cent. We do not recommend talking long term short positions here as the upward trend, again on the hourly chart, is too strong. FTSE100 DOWN.