FTSE 100 takes out 10,400 for the first time

💡 DMK Insight

The FTSE 100 hitting a new high despite tech sell-offs is a big deal for traders right now. This divergence suggests that investors are rotating into defensive sectors, which could indicate a broader market sentiment shift. While tech stocks are under pressure, the strength in the FTSE 100 and the potential for the Dow to follow suit may signal a flight to safety or value. Traders should keep an eye on key levels—if the Dow breaks above its recent resistance, it could attract more buying interest, especially from institutions looking for stability. Conversely, if tech continues to falter, it might create a ripple effect, pulling down broader indices. Here’s the thing: while the FTSE’s rise is encouraging, it’s worth questioning whether this is sustainable. If tech continues to struggle, it could lead to a broader market correction. Watch for the Dow’s performance in the coming days—if it fails to gain traction, we might see a shift back into tech, creating volatility. Keep an eye on the 34,000 level for the Dow as a critical watchpoint.