Morning Call by Greg Secker

The Bullish euphoria of Friday seems to have disappeared with the Dow closing down 373 points at 11,015 having tested the recent support and resistance level of 11,000. Further testing of this level is likely to occur with firm movement downward set to continue as the wider implications of what the bailout plan is not likely to achieve, dawns on the market makers, namely sparing America a recession. No major market news out in the US leaves the index at the mercy still, of profit takers from Friday’s moves and component news today. At home the FTSE closed down 75 points at 5,236 and today as with the Dow, no major market news here also and further profit taking, coupled with the sharp rise in the oil price, now trading at $109.24 a barrel, is indicating more negative movement on this index. Look to the break of 5,200 for confirmation of direction. Gold is currently at $904.10 for one troy ounce. Good trading and I will speak with you tomorrow