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.
- A maximum Histogram reading was made on 01/05/22, the next UKX peak occurred on 02/10/22 – 26 – trading days.
- 03/23/22 was a maximum Histogram reading, the next UKX top was on 04/11/22 – 13 – trading days.
- 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.