FTSE

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GENERAL OVERVIEW OF MARKET

ISSUE DATE: MAY 10, 2006

FTSE has fallen to a critical position. We did alert a possible break down through IC1 but not so early. The sharp fall has prompted an update.

Price is being supported by IC1 but is threatening to break down through IC1. If it breaks down through IC3 also this would be serious and indicate a fall to HEC, the last line of support. The signs are pointing a break out of these current cycles, which means the start of a bear market for FTSE. So watch IC3 for a break.

On the other hand, if FTSE can stay above the IC1 line it will rally back to the target at 6265 on June 3