The bullish divergence between the FTSE 100 and the BTI (directional indicator) was a warning that the FTSE would rally. It would appear that the rally is underway but there is a big obstacle ahead, which is the result of the Scottish referendum tomorrow. I don't think many investors will go long before the result, the rally is more likely to start on Friday, assuming the result is favourable.
Then we have the FOMC meeting announcement tonight, this is another market mover and we saw a strong rally yesterday in anticipation of some positive news. Investors bet the Fed will be in no hurry to raise rates. Today Asian markets rose on reports that China's central bank would provide 500 billion Yuan to help fund the top five banks. Mining stocks are rising as a result, the news is positive for the FTSE which has a large proportion of mining stocks amongst its constituents.
Yet I think UK investors will remain on the sidelines until after the result of the vote, all the action could start on Friday. At the moment the No campaign has a slight advantage. Given the uncertain of the referendum, the FTSE could experience some volatility in the next few days. For example the FTSE could drop sharply on Friday before rallying to new high.