Having achieved, and indeed surpassed our downside targets at the 200-day MAs, last week's recovery was strong, and lends weight to our theory that the 3-year primary uptrend will eventually reassert for the UK market. The FTSE100 gained an impressive 2.36% over the period, the lion's share of which was provided by Friday's jump, a gain of 113.3 points or 2.0%.

So how to play it? 

The spring pullback has been a good opportunity for long-term and value based investors to invest, and some opportunities of this nature are still available. Point & Figure fans will note that the recent pullback/ reassertion has raised the stop to 5,500 (see chart right), making the uptrend, as defined by the 50-box chart, a little more vulnerable than has previously been the case. Investor sentiment has taken a knock from the rapid downside action and we are placing our bets on more sideways action over the summer months before an eventual push through the highs. 

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