FTSE: Higher close on Friday, but early weakness signals trouble ahead

💡 DMK Insight

FTSE’s recent struggle to hold Friday’s gains signals potential weakness ahead. Divergence across multiple indicators is a red flag for traders, suggesting that the bullish momentum may be losing steam. This could lead to a pullback, especially if the index fails to hold key support levels. Watch for the 7,400 mark; a break below could trigger further selling pressure. Additionally, keep an eye on related markets like the DAX or S&P 500, as they often move in tandem with the FTSE. If these indices also show signs of weakness, it could amplify the downward pressure on the FTSE. On the flip side, if the FTSE manages to reclaim its recent highs, it could indicate a stronger recovery. But for now, the divergence is a clear signal to tread carefully and reassess positions. Look for volume trends and any shifts in institutional buying or selling, as these could provide further clues about market direction.