Personally, I think it's still a short. I was talking to Algotrading on Twitter, who is the real master of multidiagonal trading and he/she was saying that you some times see an overshoot on bigger time frames and then it begins to turnover to the downside.
All the best and good luck!
On this particular example I definitiely agree about an impending correction in FTSE which is showing some longer term divergence in weekly RSI as well most other major indices seeming to show divergence at one timescale or another.
I don't think this strategy will have been tested (I think that like a lot of technical analysis there is some art behind the science - hence why I'm no where near as good as Algotrading).
Effectively the idea is that you can use long term trend lines (on any time frame) to suggest pivot points where there is a confluence.
I'm glad to hear you agree. i might have been pre-mature here, but we'll see how much further it rallies...
The price action continues to confound the indicators and patterns but I think it is only a matter of time, psychologically people are going to start to get worried that there is a lack of foundations underlying the upward move.