FTSE 100: Hurst Cycles - 30th September 2022

An excellent signal at the 80 day component in the FTSE informs other equity indices worldwide as price approaches a 40 day nominal low. We look at the final moves to the 18 month low, expected soon

Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend

Analysis Summary

Price bounced from a low of 80 day magnitude at the start of September and reached our target of 7350 before finding resistance at the 80 day FLD (blue, short term chart below). The visually apparent 80 day nominal component in the FTSE (56.8 days average wavelength) has been a guiding light for other equity markets around the world as we approach the larger low, due mid-late October. The visual clarity is afforded to us due to the flattening of larger components and establishment of the 54 month nominal peak early in 2022.

From 5th September Report:

Price has been generally supported on a weekly basis by the 18 month FLD but this support is now broken, establishing a modest FLD cross target of 6974, according to Sentient Trader. It is more likely, in our opinion, price will fall much further over the next couple of months to around the 6600-6700 range and the 54 month FLD, as described in previous reports.