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FTSE looks set for another leg lower
The FTSE 100 managed to break below the 6809-6813 support zone yesterday and while we have seen a sharp rally since, there is a good chance we are set for another leg lower to put into place a bearish short-term trend.
On this occasion, it seems the 50% retracement could make the high of the day, where the market is looking towards yesterday’s lows of 6800 as the next major support level. We are currently better than evens for a move back to 6800, as opposed to a break above 6869.
However, should we reach 6800, it would likely tumble further than that. As an overall view, the FTSE looks like it is turning into a bearish short-term trend and as such, a bearish view is in play. This would be negated with an hourly close above 6920