We are clearly in a new bear market, says David Linton at Updata.
IC TIP:
Sell
But just how far can the FTSE fall? Since last summer, we have had a target of 5200, which is now being realised. After that, 4900 and then 3900 beckon. So, the signs are that we are going all the way back to near the 2003 bottom again. In the last bear market in 2000-03, few believed the target of 3450 from the point-and-figure charts, but that's where the market ended up. So don't ignore the message this time round.
IC Trades are written by Investors Chronicle writers. City Trades are written by selected external contributors. Both are based on the interpretation of patterns on a share price chart, rather than on fundamental analysis of the company's business or prospects.
