In what may become a weekly feature of the blog, here is a summary of our coverage of the FTSE futures for the week 28th June – 2nd July.

Monday, 28th June

We said:

“The bigger picture clears things up a bit. On the line chart plotting daily closes we are shaping up to give a big “Head and Shoulder” sell signal if we saw a close below 4966… Hence we are siding with the bears, and looking for a test of these key supports below”

What happened:

We got the sixth red candle in a row with the market failing short of R1 (through not reaching 4966).

Tuesday, 29th June

We said:

“…it looks increasingly like we’re going to retest 4970, then 4883.5, then 4801… 4897.5 is “the big one” as far as the longer term skew is concerned.”

What happened:

The Futures closed at 4862.5

Wednesday, 30th June

We said:

“We think a break of 4897.5 (already done) and 4852.5 (not yet done) will trigger further selling, but we are tempering our targets to 4620, or at worst 4342.

What happened:

There was a low at 4811 and a close at 4814.

Thursday, 1st July

We said:

“Unless we get back above 4851.5 and 4897 a bit sharpish things could deteriorate very quickly, and we could be in for a couple of weeks dominated by bears”

What happened:

The market failed at 4858 and sold down to 4757.

Friday, 2nd July

We said:

….we’re still below the Neckline of our Head and Shoulders pattern, and unless today’s US employment numbers can craft us a close above 4850 we’re going to get a close that doesn’t look good from a chart point of view.”

What happened:

With the jobs data it spiked briefly up to a high at 4852.5. As of 14:45 the market is threatening to test this level again….