Yesterday was more of a holding action than anything else, with tentative gains being surrendered during the course of the session. Today the line has been broken and indices are in retreat once more. US markets look more resilient, but even here we have yet to see a meaningful recovery.
FTSE continues to tumble
Yesterday saw the FTSE 100's December trendline being probed and then broken, and today the index has fallen further. Bears should be weary around the 6940 level, since this area stemmed selling yesterday and last week, but an hourly close below this level would signal a bigger move is underway.
With the 50-day simple moving average lost, we look towards the 6900 area as first-line support as it was throughout May. With daily stochastics firmly bearish however, my view shifts to the downside, with the possibility that we will revisit 6800 in due course.