The FTSE100 continued to trade sideways yesterday in a narrow range opening at 5386.16 and closing the London trading session at 5405.15, and ending as a narrow spread candle as a result.  Trading volumes were modest at 508,289,053 which is roughly in line with expectation for the summer period.  Technically the index continues to hold above all three shorter term moving averages, with both the 9 and 14 day in particular offering good support to any short term pullback.  Tuesday’s candle also suggested that the recent mildly bullish sentiment remains firmly in place with a test of support from the 14 day moving average which held firm as a result.  With the recent break above 5250 now complete this is adding further to the positive picture for the index and suggests that we should see a further rise in the short term fully supported by both the moving averages and also the underlying volume.  In the longer term we need to see the FTSE100 begin to test potential resistance at the 5644 level and any break through and above the upper level of this level at 5743.96 would open the way to a further and longer term bullish run towards 6000 and beyond in due course as we come out of the summer doldrums and into the last quarter of 2010.