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6340 stemming moves lower
Yesterday we saw the FTSE surrender its hold on 6400, but the downside was capped by 6340, which stumped two attempts to ignite a significant move lower. A break through this level, with a daily close below it, should mark the beginning of a more sustained drop for the index, potentially towards 6313 and then 6287. A recovery back above 6380 would signal that bullish momentum is returning, although we will need to see a daily close back above 6400 to suggest that this short-term consolidation has resolved itself to the upside.