The FTSE 100 Index suddenly fell below horizontal support at 6,650 points this week. The drop, resulting from factors including a 15 per cent plunge on Tuesday in the shares of supermarket operator Tesco, completes a small rounded top pattern forming since the middle of last month. Resistance from the 200-day moving average at 6,690 lies just under a long-term resistance area at 6,800 that capped in September, and in 2007 and 2000. The moving-average convergence/divergence indicator has become almost as negative as it was in mid-October. Thin markets will probably accentuate the year-end slide towards 6,295.
