Play for Thursday, June 4th

Apologies for the post-open post.

We experienced a significant break to the downside yesterday, finally abandoning the ascending channel we had been within since March.

Just before US close yesterday we bounced off the 4350s which had previously acted as support as well.

Several bearish arguments have appeared on the charts:

• Daily momentum, and momentum on longer intraday charts, is pointing south.
  
• We had a triple top formation develop.
• There is significant divergence on both daily and longer intraday charts.

We have been ranging between 4300 and 4500 for a month. A break is urgently need for our sanity. The arguments above support looking for a short entry anywhere below the 4440s if a sell signal develops. However, keep in mind that the FTSE is the only index that has not yet produced new highs when all other indices have, and momentum on the hourly is back to positive.