Mark Austin FTSE Trading Update - 27 Jan 2011

Good morning

We have as slightly muddled picture on the FTSE today.  We had a clear sell signal earlier this week which we traded and since then the FTSE has moved up but not in a very convincing manner.  Why do I say that?

Last week the FTSE gapped down and left a  closing gap at 5976 on the back of strong volume. This was one of many sell signals.  As long as the FTSE stayed below this figure we had a clear path to 5820.   A move above this level weakened my analysis which is why I didn't trade yesterday.