Yesterday, notes Mr Secker, the FTSE 100 closed down 105 points at 4,190. An interesting and ironic day after the 100 point rally was saw yesterday. We are watching the support level of 4,000 and resistance at 4400 closely now to see which one is breeched. The Dow opened yesterday with early weakness as the index got a clean break through 8,300 and dropped to 8,140 before closing the day with a big loss of 226 points. The 8,400 resistance level clearly turned the index lower, making another test at 8,000 possible. The Dow was testing the 8,400 level yesterday which is a level that had been razor sharp support throughout December. The market was clearly watching this level and pounced when 8,400 couldn’t be crossed. Continued weakness will likely be seen ahead, likely toward the 8,000 level for another critical test. In the medium and longer term note the Dow continues to build out the large triangle pattern from the Daily Chart. The lower high that has formed at 8,400 could provide the fuel needed for a potential downside break from the triangle. Watch the lower trend line closely. Today there is no major news on GBP. At 13.30 GMT the Canadian GDP is due for release. This is the change in value of all goods and services produced by the economy. The forecast if for a fall of 0.5%. If the actual figure is greater than the forecast then this is good for the economy. Also at 13.30 the US advance Quarterly GDP figure are due for release. If the actual is greater than the forecast then this is good for the currency. This data is released 30 days after the Quarter ends. Have a good weekend.

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