Morning Call by Greg Secker

Yesterday the FTSE 100 continued to pushed forward and set a high of 4,675, before falling slightly to close at 4,638. These times between the 50 ema and 200 ema are always interesting, and we watch with anticipation to see if we can break up through the 200 ema or fall back down under the 50 ema and this would see the double bottom either confirmed or not. The Dow traded mostly sideways throughout the day and continues to remain around the critical 9,000 level. The index eventually closed the day with a gain of 62 points, but may be gearing up for a much bigger move ahead. Watch for possible breaks of 8,900 or 9,100. If the index can finally break above 9,000 and rally, there is 'clear air' above. Likewise a break to the downside would also present an easy drop back toward the 8,600 level, or possibly lower. Mixed data on the service sector, factory orders and pending home sales yesterday added to the mix. While investors expected the readings would show further deterioration, they were hoping the pace of the declines would slow. The market is eager to see signs that the U.S. recession may end later this year rather than dragging on into 2010. Todays news releases we have ADP Non-Farm Payroll figures out at 13:15 GMT an indication of the main figure out on Friday. Also the oil price may be affected when the crude inventories are released at 15:30.