Last push to new high

The FTSE 100 broke into new highs yesterday, the trend is nearing an end, see chart.

The bearish divergence between the BTI and the FTSE remains in place. It is now ten days since the FTSE started to rally, yet the BTI is still declining.

The FTSE must turn down soon otherwise there is a risk the BTI will turn up. A rising BTI would be bullish however, at this stage of the rally a rising BTI would not be significant because the Top 20 Differential is overbought and the 34-day BTI is negative (bear market).

We are already in a bear market, according to the 34-day BTI, the FTSE may push moderately higher today but the odds of a decline are increasing as the Top 20 Differential is now overbought. This is another piece of evidence that the FTSE is near a top.

The BTI is a sentiment indicator used to assess the mood of investors. When the daily change in the BTI is down sentiment is bearish. When the daily change in the BTI is up sentiment is bullish. The BTI is used to assess the near term direction of the market and confirms the Elliott wave count.

To learn more go to www.eyield.co.uk