Play for Wednesday, May 3rd

Since Friday many indices have broken above the highs they had previously reached in this rally. The FTSE however has lagged behind, finding resistance yet again in the 4510s: this despite the fact that the index is strongly tied to the performance of energy and mining company and underlying commodity prices. The FTSE is usually a leading indicator to broader market indices such as the S&P.

As you can see from the charts below, the ascending channel is still intact, and we have a potential triple top to look at. Triple top formations usually form over a period of many months not just one: but we are in still in a quite unusual market.


Intraday momentum is mixed, momentum on daily and weekly charts is still positive. We would break below the ascending channel with a move towards 4400 and the neckline of the triple top is at 4300. A strong move above 4500 would disconfirm the triple top formation.

I am keeping this small long on for now.