Going into this morning’s session I was wary that the FTSE had fallen strongly over the course of last week and was due a significant pullback. Additionally it was still trading within the downward sloping trend channel on the hourly. The plan of action was similar to yesterday in that I was looking to short any retracements to key levels.

Just shorted the FTSE 100 at 5964 (with a standard 20 pip stop loss) off a classic MACD divergence pattern, coupled with a previous support / resistance level.

The FSTE bounced within a consolidation range for most of the day, and eventually proceeded to decline further towards the close. Only one more trade taken today which was a short off a pullback to a previous intraday support level at 5965, which was automatically closed out as the FTSE recovered a little prior to the US market session. I’ve just noticed that there was divergence between price and the MACD histogram at the time.

The FTSE had fallen for 5 consecutive days so although the markets looked very bearish this morning, I was wary that we could be oversold and that a bounce was due. However, Friday was a strong downward trend day, so my initial plan this morning was to look for any pullbacks to resistance and to get short which is exactly how it panned out. I got in at 6007 and closed out for 20 points as shown below.

Unfortunately I was out this afternoon and missed the carnage during the US session. Only one other trade to report which was taken based on a class-A divergence pattern on the MACD histogram. It was a counter-trend scalp and I was quick to grab a few points before lunch. Popped out for a rather long lunch and when I got back I was really surprised to see that the FTSE 100 had crashed through the 6000 level as it had.