Yet again US indices finished last week relatively strongly, only for futures markets to sell off after the close. This set the stage for a weaker open this morning, but the picture has been clouded by the Greek prime minister, who, in a barn-storming speech, firmly declared that Greece would not seek a bailout extension. A clash between the country and the rest of the eurozone is now almost inevitable.
FTSE hit by Greek crisis
The index has opened sharply lower this morning, moving outside of the 100-point range that governed this market for most of the past week.
Daily pivot points suggest support around 6740, with 6620 being the next target. The RSI continues its move lower, as the negative divergence I highlighted last week takes effect.
Any bounce will target the 6900 peak from last week, although with the Greek crisis entering a new phase this seems a distant target. The loss of the rising hourly trendline means that the emphasis here has shifted to the downside