FTSE 100 firmly back on a downward trajectory
Monday’s revival is a distant memory for the FTSE 100, as the sellers took charge yesterday and drove the price further below the 7490 area of support and below the 200-day simple moving average (SMA) at 7495.
Further declines through Friday’s low of 7418 would then bring 7340 into play. Breadth is now quite weak, with around 25% of the index’s constituents above their 20-day moving average. This is getting close to bounce territory, but, as ever, the price remains the main driver. A close above 7500 would suggest a near-term bottom has arrived.