Stock markets are at a critical junction, if the bearish case is intact the FTSE 100 and the S&P 500 must turn down now. The FTSE critical resistance is 6867, a break above that level after 8am and we could see a move to 6900.
The FTSE is trading above that level in pre-open, but there is still a chance the UK index will open below that level after 8am. Chinese industrial production was slightly lower than expected, this should damp bullish interest. As long the index stays below 6867 between 8am and 4.30pm the forecast will be valid.
