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FTSE 100 showing signs of wider breakdown
The FTSE 100 tumbled below the 7535 support level yesterday, pointing towards the possible beginning of a next period of weakness. The subsequent rally back into that 7535 level has been fleeting, with the respect of that previous support as new resistance pointing towards the potential for further downside.
Crucially, with yesterday’s fall below 7489, we saw a new three-month low for the index, and that may not be the end. A continued breakdown from here would move us out of a period of consolidation that has lasted two months, and instead take us into the next leg lower for the index. Until then, there is still a chance we will rebound to continue that two-month range.