Not only is seasonality positive for the indices right now, but cyclicality is also in their favour. One of the more influential cycles in the FTSE 100 is one of around 50 days’ duration. With the last turning-point having occurred in mid-to-late November, the next one might be expected some 25 sessions later, which takes us right up to around Christmas. While I am more bullish about the DAX than the FTSE right now, I would still be happy buying into the UK index on any intraday dips. A break to the upside should be imminent.
