The FTSE 100 fell due to the spillover of the UK gilt market’s liquidity crisis. The index came under pressure at 7100 on the 20-day moving average. A lack of follow-up support indicates that the bearish mood still prevails and the bulls are wary of a dead cat bounce. They will need to lift 7000 to retain some foothold. On the downside, 6800 is a critical bottom not only from the latest bounce but also last March’s lows. A breakout could trigger momentum selling to 6620 and signal a bearish market in the medium-term.
