FTSE managed to close higher on Friday, yet the market has struggled to maintain those gains in early trading today. Technically, I’m seeing clear divergence across multiple indicators — often the first warning sign that momentum is fading.
With all major indicators flashing this divergence, it’s likely the market will falter at these elevated levels and retrace toward the 10,580–10,497 region. Bulls who have ignored recent bearish tendencies will be watching that zone closely, and they’ll likely be right to step in unless we see a confirmed break below 10,496.
A move beneath that level would give sellers the opening they’ve been waiting for. If they seize it, we could see them drive through the buyers’ frontline, pushing the market lower, with 10,456 expected to give way and expose 10,328 as the next downside target.
Sellers have been tempted throughout the FTSE’s recent rally, only to be pushed back by resilient bulls defending lower levels. Perhaps this time the sellers finally get their turn — and the chance to take the market by the horns.
We’ll learn a lot from today’s action. My Money My Risk…
