** 1/12/10 - 7.21am - by James Gerrish**
The market continues to remain resilient with the DOW JONES off by more than 110 points at one stage last night before settling down just 3 points about an hour from the close. The negative bias is flowing from Europe and if you take a look at the chart of the FTSE 100 below, you can see that pessimism there has really set in. Last night this was offset by
comments from Obama that insinuated he may extend the Bush introduced tax cuts to help the recovery in the US.
At time of writing, the DOW JONES was down -3 points at 11047. The S&P 500, which we discussed early on in the week as having a key level of support around 1170 has continued to close above this level. If you look at the chart of the S&P 500, a break of this level on a close basis would more than likely signal an acceleration of a downside move that would see the first level of support come in around the 1127 level.
In London, the FTSE 100 lost ground again overnight down -22 points or -0.41% to close at 5528. Locally, the SPI FUTURES contract is pricing in a flat start (down -1 point) when trading kicks off for the first day of December.
The weekly and daily trend in the market is currently flat while momentum does appear to be building to the downside. At this stage however, its too early to call either way.
