The FTSE100 now is trading below the most important daily moving averages, and after it reached on the first quarter a record high, its framework now looks bearish.
Its recent weakness can also be explained by the fact that the FTSE100 does not have a relevant Tech component. Thus the recent rally driven by technological corporation did not impact the main UK stock index.
Today the index is testing the 200 day SMA resistance in area 7,545, and is gaining the 0.77%. Another relevant resistance is the dynamic trendline that linked lower lows where now the index is below it.
To regain positive market sentiment the FTSE100 has to rise above these 2 levels and position itself near 7,700 area.
Below this month low 7,400 another bearish leg is quite possible.
