Start of the year and we could be in for a red candle day with the FTSE selling off overnight and taking another sharp fall this morning at the open. Looking at the higher time frame charts the FTSE is still within the downward sloping channel on the daily, on the hourly the decline has accelerated noticeably as its fallen out of the channel it was previously in.

My initial premise was to get long this morning as the first trading day of the year tends to be bullish, but I hesitated and waited for the market to retrace to the 20EMA, then got short trying to stay in sync with the trend. Closed out the trade for 25 points as the FTSE rallied back up off support, so a good start to the week.