These scenarios suggested buying the index on either a break above 6556, or following a further fall to 6056, whichever occurred first. In the event the FTSE 100 completed the latter, with an intraday low of 6023 on 24 June neatly triggering this lower-risk buying opportunity. The target duly became 6922.
The subsequent rally has been impressive, encouraged by Mark Carney's new reign as governor of the Bank of England, and has to date measured around 9%. It has taken the index to a level just above the previous support band (defined as 6491-6556) and, as a result, a little bit of corrective behaviour may now take place. Tactically, I would ignore this likely hesitation. I don't expect the retreat to be deep, merely a healthy unwind of some short-term excess. Furthermore, both the Dow and Germany 30 have unfinished business to the upside.
The recent correction completed a perfect Gann-theory fall of 12.5%, matching the percentage decline achieved during the FTSE's last decent correction in March 2012. This percentage line, along with a line representing the recent 8.33% advance, are the only changes to today's chart offering.
Recommendation: Stay long. Target 6922. Stop-losses can be initiated and activated on weakness below 6300.