The FTSE 100 broke below the key support level of 5200 yesterday. Today it came back to test the level and I shorted it. The DJ Euro Stoxx 50 has also broken out to the downside, but the SPX held at 1084 last night (although the futures have subsequently broken out downwards). Given the general anti-risk mood (sovereign risk, China tightening, Eurozone sovereign risk, withdrawal of Central Bank liquidity support), and the considerations of this post, I have entered a short position.

The charts, from IG Index, show the approximate entry and stop levels.

Update: Wimped out because I wasn’t feeling well — closed out for a small loss (£88 I think).

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