Yesterday – notes Greg Secker – the FTSE 100 closed down 17 points at 4,091 following an interesting news-led day with Barak Obama being inaugurated as the 44th US President. A high test bar has formed on the daily chart as the index moves slowly down towards the 4,000 level. We will watch with interest over the coming to see if the new President can inject some optimism into the US markets – the effect of sentiment on the Markets can sometimes be difficult to gauge. The Dow opened the day with an early drop through the bottom of the three-day consolidation and quickly tested the 8,100 level. The index remained beneath 8,200 throughout the day and eventually sold off to the Close ending the day beneath 8,000 with a loss of 332 points. We can see that the Dow is once again testing the key 8,000 support level. Furthermore, the Dow is breaking the lower trend line of a large ascending triangle that has been developing since October and this break could lead to much bigger selling pressure in the weeks ahead. Continue to watch 8,000 as a very major level, as the index may continue to test this zone before decisive action is taken away from this level. Today on the Forex news we have the MPC Meeting Minutes released at 09:30. These releases can sometimes affect the markets if the details of the meeting raise eyebrows and provide a possible indication as to future meetings. For those of you trading late into the evening please be aware that the Japanese Trade Balance is going to be released at 23.50. This is a major release for the Asian session and is the difference between the value of imported and exported goods during the previous month. If the actual is greater than the forecast than this is good for the currency. Good trading.
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