The market looked damp right from the start yesterday, in fact even before the FTSE had opened the DAX and Stoxx had failed to hold gaps that they’d created with strong opens, so you could argue that the bulls had lost control of the impetus even before the FTSE opened.
But it never felt like it was going to be a big nasty down day, and sure enough we only sold off to 5545. We had bold support at 5548 as this is the Marabuzo line of the large green candle that we posted on Friday. So this has held, but may come under pressure again today.
We turn bearish below 5435; last week’s low.
We think the market is edgy and nervous for now. There is lots of volatility but little firm direction, which is the sort of thing one often sees at turning points.
Below are today’s support and resistance levels worthy of note.
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