Since the peak at the start of March, the FTSE has declined nearly 300 points, though it is bouncing back now. The Dow has continued to make new highs though and looks like it is headed for 15000:
A rise to this level would probably drag the FTSE back to 6500 and I am hoping to see a turn at these psychologically important points. Then the fall in the FTSE should begin in earnest. There has been talk in the media of this rally being on its last legs for a while now and so a turn at a significant milestone is a reasonable expectation. Sentiment in Europe and the UK has been affected by the Cyprus bailout including a tax on savers which could cause bank runs elsewhere in Europe when other countries hit trouble, but the US remains unconcerned about this. There was a strong dip there on Friday after the disappointing job numbers, but, even then, the Dow recovered most of its losses before the close and has continued to climb since. I cannot foresee what will change sentiment in the US, but I think something will turn up!
