Here is a chart of FTAS (FTSE All-Share) over the last 5 years:
The chart was created using gnuplot, with about as much style as a mid-90’s PC desktop environment.
There has been a support/resistance level of about 3400 for the last couple of years, as indicated by the thick black horizontal line. I have circled areas of resistance with red circles, and an area of support with a blue circle. I could have, arguably, drawn a few more circles.
FTAS now sits at 3398 as I write, a shade below 3400. It will be interesting to see if that level now acts as support or resistance.
There are those that have argued that we have been in a bear market since May 2015.
Resources continue to amaze at just how low they can go. Milton Berg has argued that commodities have been in a bear market since 2011. He says that, historically, we have never had a bear market in commodities that lasted less than 13 years. We are only 5 years into that bear.
He says that commodities may sink 20% or more (as at 30-Nov-2015), and does not believe that we are near an end. He attributes the problems to central banks; although low rates stimulates demand, it doesn’t compensate for the supply increase.
Berg is bullish on gold stocks in the short term. Although gold is making new lows, gold stocks are holding their ground.
Personally, I do not know what will happen next. I do feel bearish, though.