Bullish Evidence From the United Kingdom Stock Market

The prior blog “Bullish Evidence From the Mexican Stock Market” examined evidence from the main  Mexican stock index – IPC Mexico (ME).  The subject of this current blog is  the United Kingdom main stock index – UK 100 (UKX).

The daily UKX chart courtesy of Trading View illustrates its action.

The UKX like the ME had its 2022 top after the S&P 500 (SPX) January peak.  The UKX top came on 02/10/22  it and continued to be relatively more bullish than the SPX.  The UKX retraced  about 35% of its post March 2020 bull phase while the SPX retraced about 50%. The UKX 2022 drop was 11.7% vs. the SPX 27.4% decline.  Also note the UKX – 2022 bear move was even choppier than the SPX- the signature of a correction in a rising main trend.   

Subsequent to its mid-October bottom the UKX like  the Dow Jones Industrial Average has retrace  50% of its 2022 decline.

The daily MACD provides evidence of when the current UKX rally could peak. Note from the prior three rallies  the distance between the maximum MACD – Histogram reading and the next UKX peak.

  1. A maximum Histogram reading was  made on 01/05/22, the next UKX peak occurred on 02/10/22 – 26 – trading days.
  2.  03/23/22 was a maximum Histogram reading, the next UKX top was on 04/11/22 – 13 – trading days.
  3.  07/29/22 was a maximum Histogram reading, the next UKX top was on 08/19/22 – 15 – trading  days.

Assuming  that a maximum Histogram reading occurred on 11/01/22 the next UKX top could come sometime between mid-November and early December 2022.

Its possible the next top could exceed the 02/10/22 peak. If there’s no new 2022 high, the next peak could be in the area  of a  90 to 99.9% retracement of the 2022 decline.

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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