Morning Call by Greg Secker

Another spate of heavy selling started the session for the Dow Jones yesterday and having tested the low of 10,742 the index rallied and closed higher at 11059. The day’s low had not been reached since July 2006. Today, look to breakouts of above 11,300 and below 10,700 levels for further decisive movement. With the US Current Account Balance release at 1.30pm British Summer Time, further strengthening of yesterday’s attempts at reversing the negative impact of the largest intraday range since January, may well be impeded. This side of the pond, the FTSE fared worse reaching lows not seen since June 2005. The index did manage to close up form the intraday low, but ended 178 points down on Monday’s close, just above the 5,000 level at 5,025. With a raft of news out at 9.30 am BST, lead by the Bank of England Minutes, this market will look for any positives to start the repair needed after two days of heavy losses. Barclays announcement to buy part of Lehman’s operation could well lead any bounce back. Oil is now at $93.92 a barrel and Gold is currently trading at $784.00. Have a great day trading and I will speak with you tomorrow.