So FTSE played out well yesterday and failed ahead of the 78.6 Fib level @ 7434...we reached 7422 and came lower.. Now we are lower again this morning...partly because of the weakness the US showed yesterday which again has carried on through overnight...FTSE I thought would reverse yesterday and that is showing more possibility today.... The rejection of this important 7434 resistance cannot be ignored, especially as I mentioned in my weekly video and yesterday that the market is overbought on the daily charts and in need of correction....

We are seeing this now....and where can we go down to....well I am thinking that the 7358 to 7342 looking to entice us lower...Now will this support hold ?...well it all depends on whether the market is still showing overbought...This is a good area of support as is 7336 which I think could well be our destination for today...

Now we do have resistance from the DP @ 7394 and again @ 7408....as we know...I still think that for today we sell rallies..and if we can get back in the high 90s we can sell...adding to 7408, keeping stops above 7434...and it needs to be at least 10 pips above this area to allow for algos and stop hunters...Now I think the US remains under pressure... so if FTSE is going to go higher...it needs to do it this morning...before the US come in...If we can do this then we can position ourselves for a high volume day with the emphasis at the moment on the downside...We lose 7336 and 7305/02 would be the short term objective...


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