The Hidden Story Behind the FTSEEuro / US DollarCAPITALCOM:EURUSDCapitalcomIf you trade the FTSE 100, the chart is naturally where your analysis begins. Support and resistance, moving averages and price action will usually tell you whether buyers or sellers have the upper hand. That's exactly how it should be, because price is ultimately the only thing that matters. The problem is that price doesn't always explain why the market is behaving the way it is. Over the past four months, the FTSE has largely traded sideways between support around 10,170 and resistance near 10,725. Buyers have repeatedly stepped in around the lower end of the range, while every rally towards resistance has struggled to develop into a sustained breakout. Even so, the broader picture remains constructive. The index continues to trade above rising 50 and 200-day moving averages, while the sequence of higher lows suggests the longer-term trend remains intact. At first glance, it looks like a market waiting for its next catalyst. UK100 Daily Candle Chart Past performance is not a reliable indicator of future results The chart, however, only tells part of the story. One of the simplest ways to understand what's happening beneath the surface is to look at sector leadership. While the FTSE reflects the performance of the UK's largest listed companies, broader sector performance provides a useful indication of where capital is flowing across the market. Comparing different timeframes often reveals changes in leadership long before they become obvious on the headline index.