Financially Heavy FTSE 100 Index Trading Cycle Heading Lower Into 2008

Stock-Markets / Banking Stocks Nov 20, 2007 - 02:20 AM GMT

Best Financial Markets Analysis Article Weakness Continues For Global Financial's: The on going downward pressure being felt by global financial's appears to have more pain ahead before stability begins to develop. The credit and mortgage crisis that started in the U.S.A has quickly expanded to financial centres around the world. The S&P Global Financial Index ETF (Symbol IXG) continues to waterfall from the May 2007 peak with no clear evidence of support.

The financially-heavy FTSE (Chart 2) has also stalled its upward trend with increasing selling pressure.

Technical models indicate the volatility and negative price movement being displayed, in many global financial sectors, is the first major downward break since the beginning of the bull market in late 2002. As the financial's sectors are a key leading indicator of the stock markets, this building weakness casts doubt on the continuation of the five year bull market and may suggest broad market top has begun.

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By Donald W. Dony, FCSI, MFTA
www.technicalspeculator.com

COPYRIGHT © 2007 Donald W. Dony
Donald W. Dony, FCSI, MFTA has been in the investment profession for over 20 years, first as a stock broker in the mid 1980's and then as the principal of D. W. Dony and Associates Inc., a financial consulting firm to present. He is the editor and publisher of the Technical Speculator, a monthly international investment newsletter, which specializes in major world equity markets, currencies, bonds and interest rates as well as the precious metals markets.

Donald is also an instructor for the Canadian Securities Institute (CSI). He is often called upon to design technical analysis training programs and to provide teaching to industry professionals on technical analysis at many of Canada's leading brokerage firms. He is a respected specialist in the area of intermarket and cycle analysis and a frequent speaker at investment conferences.

Mr. Dony is a member of the Canadian Society of Technical Analysts (CSTA) and the International Federation of Technical Analysts (IFTA).

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