Morning Call by Greg Secker

Yesterday the FTSE closed down 157 points at 4246, showing weakness from the outset and trailing down to a consolidation in the final two hours of trading as seen on the 5 minute chart. Today with a raft of newsbreaks that are all at low level watch for component news and pressure from the Dow should the industrial average find decisive direction. The Dow Jones fell with early weakness and then traded in a 300 point range to end the day with an overall loss against Monday’s close of 177 at 8,693. Today with further pressure from the Asia markets over continued concerns that despite all efforts to the contrary the economy is worsening on the back of fears that Japan’s economy is likely to grind to a halt in the third quarter. With only low level news out today look to component news for directional movement. If yesterday’s low is broken and sustained this could signal the next fall towards the 8,100 level. Oil is trading below the $60 level at $59.43 and gold is at $735.70. Good trading and I will speak with you tomorrow.