TECHS: FTSE futures (M0) stalled...........>

EQUITIES: TECHS: FTSE futures (M0) stalled yesterday at 6191.0. Does this signal

a reversal?:

- Yesterday's price action in Japanese candle terms highlights an important

reversal pattern, a bearish engulfing.

- This is a strong reversal signal and suggests bullish sentiment and momentum

is waning.

- The significance of this pattern is reinforced by the fact that yesterday's

move lower follows a failed attempt to confirm a clear break of the key 50-day

EMA. The average currently intersects at 5974.1.

- What this tells us is that yesterday's high of 6191.00 should be viewed as a

key S/T resistance. Furthermore, while it holds, near-term risk for a deeper

pullback remains elevated.

- Scope exists for weakness towards 5612.0, Apr 21 low and 5525.5, Apr 16 low

initially.

- A break of 6191.00 is required to reinstate a bullish theme.

- Watch Sterling.