The FTSE managed to recover some ground overnight and this was reflected at the open as the FTSE slowly clawed its way back past the 6000 level. I think it may be one of those days where the market just keeps grinding up and possibly sells off towards the end of the day as traders close positions over the weekend given the current market climate. I’ve drawn a trendline on the 5minute chart which seems to be holding thus far, and may trade off that around key levels or any potential divergence patterns that develop. Another key resistance level to watch is 6014 which has been prior support (see hourly chart) and the market was just shy of it this morning, so may trade any re-test.

Further declines for the FTSE 100 index overnight saw it trading below the 6000 level again. Despite a slight retracement during the open, the market has pushed below further and is down at the 5900 level as I type this. Looking at the daily chart the FTSE is within the downward sloping channel and if it continues south, the FTSE could fall as far as 5770 before it hits the lower trendline of the channel. I’m itching to take a speculative long trade off this level but I think given the market direction over the last few days, it’s better to stick with shorts off any retracements. Looking to go short around the 5925 level and for previous support to become resistance.

Overnight the FTSE sold off over 100 points then recovered a little prior to the open. At the open it was more downward pressure until it found support around the 6070 level. Looking at the hourly chart the FTSE is currently sitting in a trading range and I expect it to grind its way back to the top of that range by the close of play. One other possible scenario is a pullback to the 6100 – 6113 level and a sell off from there as support becomes resistance.

The FTSE managed to recover during the after hours session forming a double bottom on the hourly chart, and was trading up as far as the 6160 level overnight. At the open it was a similar scenario to yesterday with a sharp fall at the open. I managed to get in a small scalp as the market pulled back to the 20EMA and closed out at the overnight support level. Just taken a counter-trend trade off the 6100 level which really needs to turn up from here. If it falls back I may just cut this trade early.