UK 100 Could Soon Make an All-Time High

As of 05/27/22 the US stock market represented by the S&P 500 (SPX) was 13.70% below its all-time high made on 01/04/22.  On 05/27/22  the UK 100 (UKX) was 4.27% below its all-time high made on 05/22/18 and only 1.58% below its 2022 high made on 02/10/22.

The 05/15/22 blog “Bullish Stock Signals  From Europe and Asia” illustrated  that UKX was the most bullish of four national stock indices.  UKX is leading  on the upside and appears to be in position for a thrust up to at least a new 2022 high.

The daily UKX chart courtesy of Trading View illustrates  the recent action.

UKX has  broken above the upper trend line of  an indecision triangle, which also appears  to be the ending portion of an Elliott wave – Horizontal Triangle that began at the 02/10/22 top.  If so then the 05/19/22 bottom was the termination point of the Horizontal Triangle.  Usually after a Horizontal Triangle there’s a strong thrust in the direction of the primary trend – which in this case is up. 

UKX is  near an area of declining  tops which are logical  points to place stop buy orders .  Because the tops are in proximity to each other its possible that triggering stop buy orders on the lowest peak could propel the UKX to the next top and stop buy orders.  Like  falling  dominos, a  series  of triggered  stop buy orders could quickly propel the UKX to a new 2022 high.

US and European stock generally trend together, if in the next one or two weeks  UKX continues to rise, US stocks are likely to follow.

Traders  are long  100% SPX related non-leveraged funds. Continue holding long.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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