The Stock Market Rally The rally in the UK market has continued but is now at a level and time when it should react and retrace. It is the extent of this expected retracement that will be a really strong signal for the return of a 'bull' market (or otherwise).

The US market has also now started to catch up with the UK but is still some way off giving any buy signals. To jump in to the stock market and buy shares now might just invite suffering whipsawing losses as the share prices take a downturn. The Overall Market Rating (OMR) of the FTSE 350 has climbed over recent weeks and has now entered 'bull' territory with the FTSE 250 index showing an OMR of 58% (although the FTSE 100 OMR is only at 41%). But, as we comment in our Stock Markets Review (4th May), this is only an 'in prospect' 'bull' signal as we must pancho for the expected retracement and then evaluate the strength of any 'buy' signals that might then shine forth.

And, make no mistake about it, a downturn in share prices is not only.