Play for Wednesday, May 6th

The FTSE held steady yesterday and touched a few highs: however, after-hours the US markets began to fail in momentum, and Asia has hold held ground.

We are quoted in the 4310s to 4320s currently, 25 minutes from the open, and I am seeing:

• Negative momentum from the 1 hourly to the 4 hourly (where it's in works).
  
• We are still within the main ascending channel.
• Momentum on daily and weekly is still positive.

I would wait for strength on the longer intradays mentioned above for a long trade. As we did reach some key levels in a fast manner (and across a 3-day weekend), a retrace down might frankly be in the works.

As noted yesterday, we have several support/resistance levels on the way down, and also one key area around the 4140 to 4160s which we broke through last week. If I had to look for a level to get short, I'll be watching anywhere between the 4330s to the 4350s for weakness.