Mark Austin FTSE Service Update - 1st Oct 2010

Good morning

Yesterday produced a negative outside day on the FTSE. This is when the Index makes a lower low, a higher high and then closes below the previous day's closing level (see attached chart). A strong sell signal by all accounts and indicates a trend change.  The move to the downside was also supported by strong volume.

On top of this, the VIX which is a measure of volatility has also increased for all global indices. This is another bearish sign.

So at this stage the FTSE looks like it is rolling over and there is certainly some strong selling pressure coming in.

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