Lower Highs

The markets dramatic rise this week was in complete contradiction to last weeks falls, and possibly had something to do with an RBS report, showing central bankers were planning to hold a greater percentage of  equities as part of their asset allocation mix. However, despite the rally, the market made lower highs on both the intra-week and closing weekly prices than it's recent highs. A signal of a medium term peak in the market. We will short a further 2 contracts at the open, again setting a stop-loss for all 8 contracts at 1601 and a target price of 1535 where will take profits on all 8 contracts and buy 2 contracts on a closing price below 1535.