Morning Call by Traders University

The FTSE closed down 27.30 points, or 0.7 percent, at 4,006.83 on Wednesday. The FTSE 100 is predicted to open lower today by 4 to 11 points, after retreating for five sessions in a row. The Dow opened the day with an early decline in the morning session, as the index dropped to 7,480 before buyers pushed the index higher by 135 points to the 7,615 zone. The index then fell flat for the rest of the day and eventually closed the session with a modest gain of just 3 points. The hourly chart shows the index is now consolidating in a range of 7,475 to 7,700. Look for the Dow to continue to build out in this consolidation until a possible breakout. Typically, consolidations that form at lows lead to more selling pressure, so watch the bottom of the pattern closely. Keep an eye on the November lows at 7,450, as all traders will be watching this zone. In forex news: At 1:30pm USD PPI m/m and Unemployment claims expected to be better, so watch out! The cost of protecting Japanese debt from default fell after the Bank of Japan said it will buy as much as 1 trillion yen ($10.7 billion) of corporate bonds in a bid to spur borrowing and stem the deepening recession.