FTSE Technical Highlights:
- FTSE has price resistance and 200-day ahead
- A soft to weak market is anticipated, watch the U.S. markets too
FTSE has price resistance and 200-day ahead
The rally in the FTSE off the December low has stalled of late around price resistance dating back to September. Looking just a bit over last week’s high there is the 200-day MA rolling lower, which if we see even another small push higher from here the market may be stopped in its tracks.
Other global markets, namely the U.S., continue to hold tough to trading higher which reflects a short-term relative weakness out of the U.K. benchmark. With resistance in the area this isn’t wholly surprising but is nevertheless a cautionary signal.
The S&P 500, as discussed the other day, is coming up on 2800/17, a big spot for the market. A turn lower from there could have global markets weakening in earnest. Indices such as the FTSE and DAX (especially the DAX) could be downside leaders as sellers hit the weakest markets.
For now, it is still a bit of a tough spot tactically, as resistance is in the area but the trend remains positive so far in the absence of a strong selling off noted levels. Soon that could change.
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FTSE Daily Chart (Price and MA resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX