Morning Call by Greg Secker

The Dow Jones opened by falling to within 35 points of the 11,000 level and then rallied over 200 points until its close, to finish with a 33 point gain at 11,221. This week a new channel could form between the 11,000 and 11,450 levels and should the price action move decisively outside this range then this could be taken as the signal for another big move. Little news at the front half of the week, other than the Government intervention with Freddie Mac and Fannie Mae, in America, to drive market reaction, leaves the back end to instigate the main bulk of movement this week and although the Bears had the overall sway last week a continuation of Friday’s bounce could be seen especially in the light of yesterday's announcement. Friday’s FTSE closed down 121 points, another 2.3% lower, at 5,240 bringing the weekly loss to 7%, the biggest weekly drop since July 2002 and led mainly on Friday by the banking sector. With some lower level news out today at 9.30 am British Summer Time, this index will need that news to be good to reinforce any bounce from last weeks tumble. Gold is currently at $108.95 and Gold is at $818.70. Have a great day’s trading and I will see you tomorrow.