FTSE 100: Hurst Cycles - 6th January 2022

The FTSE has outperformed US markets in recent times but still underperforms at the longer components. Price is approaching the 20 week nominal peak, we look at the phasing here

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Analysis Summary

With the 18 month nominal low established in global markets in the middle of October 2022, it has been interesting to watch how the European indices have largely outperformed their US counterparts. Something that was not the case in the runup from the 2020 ‘covid’ lows. Typical of this reaction is the FTSE 100, which has helped guide the placement of the 18 month component low in other markets due to the principle of commonality, alongside the EUROSTOXX and DAX.

Across the planet the 18 month component in stockmarkets is running at around 15.5-16.5 months average wavelength.

In our last report we speculated as such, with the 80 day FLD target of 7305 being heavily overshot recently, prior to returning to that level (and the 80 day FLD support) for the most recent 80 day low iteration.

From 1st November Report:

The l…