The Equity Charts That Matter

FTSE again rejecting resistance 

I could cut and paste last week's FTSE text to this week because exactlythe same applies to the updated chart. The great thing is though that sincelast Monday there have been two more opportunities to sell this resistance areawith a tight stop. We will see how today unfolds and maybe the highs get takenagain but at the moment this key 6190-6220 area keeps holding. Until we get adaily close above here then sellers still have a chance to keep playing theshort. Ultimate target below would be the gap fill from ECB day. 

Russell - topped out or flagging? 

The Russell has had the most impressive run in the most recent run up -a 15%+ rally from the Feb lows. It has consolidated somewhat near these highsthough and the question is whether it is flagging for more upside or whetherthe move is done. It looks more like a a flag to me but and I would be inclinedto lean bullish so long as we don't break below the 38.1% which also nicelycoincides with the late January high. There is resistance just above at1095-1105 which is key, any hold here would mark a false break of th recenthighs and a possible leg back down. A daily close through here would get thebulls confident of a move towards 1140-60.

Stoxx fighting with resistance 

I've had 3110-16 marked on my chart since the beginning of the year asgood resistance in the Eurstoxx. It breached it briefly on the excitement of theECB but failed to get through there again this morning - even when the Daxsailed through it's ECB highs. This suggests weakness in the Stoxx index to meand until we are back above here I would be leaving on the short side with aview to testing the recent trend line again and a possible gap fill from ECBday later in the week.