Morning Call by Greg Secker

The Dow Jones fell sharply yesterday from the open and closed down 345 points lower at 11,188. Today with the Non Farm Payroll announcement at 1.30 pm (British Summer Time) and with expectation of further weakening of the employment situation in America, adding further pressure to interest rates, coupled with end of the week position adjustment, the index could take a further battering today should the news be worse than expected. Look to the low in July of 10,800 as the testing level. The FTSE yesterday meandered in a 50 point channel until early afternoon and then, with Dows lead, fell to end the day down 137 points at 5,362. With the potential of the NFP and other employment data strongly affecting both indices’ market direction, look for pressure pushing below 5,300 level and then to a fall to 5,000 should the 10,800 level be tested by the Dow, on the back of negative news. Oil is currently at $107.93 a barrel and Gold is at $800.60 for one troy ounce. Have a great day’s trading a fabulous weekend and I will speak with you on Monday.