FTSE 100 could move to January lows
The index has clambered off the lows seen yesterday, but we still have to see a close above 6600 to suggest that a bottom was put in place yesterday. Daily stochastics and relative strength index have yet to turn bullish, but with non-farm payrolls, a US holiday and the Greek crisis all on this week sellers need to be very careful as well.
So far on the hourly chart the index has yet to break the 50-hour EMA (6590), a problem that has existed since 25 June, so any turnaround needs to start with this first.
A move below 6500 would put us back in course for the January lows in the direction of 6300, giving back almost all the gains for the year.