Morning Call by Traders University

Footsie lost nearly 100 point yesterday to close below the 50 EMA. The shares took a late dive as US Treasury Secretary Timothy Geithner unveiled a revamped plan to kick-start the economy that could cost as much as $2trn.The Dow opened the day yesterday with a very bearish decline through 8,200 and finally closed down 382 points. The Dow dropped sharply throughout the day and eventually tested support at 7,850, which was the low last week. A test of this line at 7,800 will tell us a lot about a potential bounce or break ahead. The NASDAQ and S&P each broke their respective patterns to the downside yesterday, dropping steadily to the close. We are looking for a potential consolidation to form at lows tomorrow before another directional move occurs. This morning at 09:30 our claimant count change is released. This is the change in the number of people claiming unemployment-related benefits during the previous month. The forecast is an increase from 78,000 to 88,500, and if the actual is less than the forecast then this is good for the currency. Then at 10.30 the Bank of England Inflation Report is published. At 13.30 the Canadian and US Trade Balance are due to be released. Any differences between the actual figure and the forecast may cause fluctuations in the currency.