FTSE 100 downtrend remains in play
The FTSE has been trending lower since the market touched the all-time high of 7130 earlier in the month. The break below 6980 was a bearish signal and led to another sharp deterioration.
Subsequently we have seen price break below the key 6927 support level overnight. This means we have seen the index clear out a crucial zone of resistance encompassing the 13 October low, alongside the August and September highs.
With that in mind, it seems likely we will see the selling continue apace, where the creation of lower lows and lower highs provides the confidence we will see further downside.