Morning Call by Traders University

Britain’s FTSE 100 index is seen opening 2 to 10 points lower on Wednesday according to financial bookmakers, after closing at its lowest level in three months in the previous session. The UK benchmark closed down 100.62 points, or 2.4 percent at 4,034.13 on Tuesday, retreating for the fourth straight session. The Dow opened yesterday with major selling pressure and broke below 7,800 finally to a test at 7,550, as seen in the 15 and 60 Minute Charts. The index eventually closed the day at the lows of the session with a loss of 298 points and could be headed lower tomorrow. The 15 minute chart shows the Dow holding a tight consolidation range from 7,550 to 7700. If it breaks out from this consolidation and tests the november lows of 7450, we could either see a quick increase in buying pressure or if buying is minimal, we could see the index heading for new lows at 7,000. In forex news today for the GBP the MPC Meeting Minutes are due at 0930 to highlight members recent voting on monetary policy. At 1330 US Building permits are due which is expected to see a slight reduction to 0.53M. Then at 1800 US Fed Chairman Bernanke speaks. Yesterday, in the US the TIC Long Term Purchases which is an indication of US long term securities purchased by foreigners came in at significantly higher than expected at 34.8B.