Z1!held the ascending trendline in mid-July while semiconductors were in sell mode. It has since bounced from that support and printed a new ATH just below 11K.

The divergence is structural, not macro. FTSE is effectively an anti-tech index, with little direct semiconductor exposure and heavy weightings in banks, energy, miners, defence, and dividend-heavy defensive names. The same higher-oil, higher-yield regime that compresses long-duration tech multiples supports FTSE heavyweights through stronger energy cash flows and bank earnings. Record dividends and a cheaper starting valuation have reinforced the rotation.

This is not evidence that the UK economy or global risk appetite has suddenly broken out. It is a rotation out of expensive duration and into cash-generative old-economy sectors.

11K is now the immediate resistance. A sustained close above it confirms another leg higher. If 11K rejects again, 10.7K is the first support, followed by the ascending trendline around 10.6K. As long as FTSE holds above that trendline, the path of least resistance remains higher. A sustained break below it would put the breakout at risk.

FTSE is still not immune to a broad liquidation. If higher oil and yields trigger a full risk-off move, its sector mix may deliver relative outperformance, not absolute protection.