Morning Call by Traders University

The FTSE 100 index ended 129.31 points, or 3.2 percent lower, on Friday at 3,889.06, giving a loss of 7.2 percent for the week and 12 percent in total for this year. The London Index reached 3907.36 - surpassing the previous low for the year which was 3956.7. Market analysts predict that London’s leading index will now flirt with the 3800 level if selling price action continues. On Friday, the Dow opened the day with early selling pressure and dropped to new lows. The index then reversed sharply from lows, but still ended the day with a loss of 100 points. The daily chart shows the index broke through critical support at 7,450 and reached a low of 7,250 before bouncing higher into the close. If the Dow breaks through 7,200, we could see high pressure ahead. Otherwise, a break through the near-term upper trend line at 7,500 could spark a nice short-term rise of the index. Forex news: the only significant Forex news out today is CAD core retail sales at 13.30, forecast at -2.0%, previously -2.3%. News to watch out for for the rest of the week for US dollar traders includes: USD consumer confidence index for the month of February, forecast to reach a fresh record low; Federal Reserve Chairman Ben Bernanke is due to testify before the Senate on the economic and Fed policy so listen closely for more detailed outlooks on growth, unemployment, inflation, and the financial markets; US Durable Goods Orders due out later in the week, forecast to have dropped 2.3 percent; and the preliminary reading of Q4 GDP for the US forecast to be revised even lower after initial estimates showed the index down 3.5 percent.