Yesterday – notes Greg Secker – the FTSE closed down 72 points at 4,077 creeping closer to the key number of 4,000. It will be interesting to see if the index finds support at this key level over the next few days and bounces back up. The Dow closed yesterday down 64 points at 7,936 trading within a tight range at the lows. Yesterday – notes Greg Secker – the Dow opened with early weakness and tested 7,900. The index continued to hold at lows and proceeded to trade within a relatively tight range from 7,865 to 8,000 before ending the day with a slight loss. The index continues to hold at three-week support at 7,900 and continues to test the major 8,000 level, as well as the lower boundary of the large symmetrical triangle that continues to develop. Watch 7,850 and 8,000 for early direction today and over the coming days. Overnight the Bank of Australia cut interest rates by 1.0% to 3.25% and their Trade Balance fell. This 1.0% cut was in line with expectations and was factored into the value of the currency. This afternoon at 15.30 GMT the US Pending Home Sales will be released. If the actual figure is greater than the forecast then this is good for the currency. Today may be a little quiet because of the ADP Non-Farm Payroll figure due for release at 13.15 GMT tomorrow. This is an estimate guide figure to the official Non-Farm Payroll at 13.30 GMT on Friday. The forecast is for around 530,000 job losses in the US in the last month and it will be interesting to see how the Markets and new US Administration reacts if the actual figure is different from this. Good Trading.
