Chart of the day: FTSE has further to fall

After hitting a record high above 7,000 points in April, the FTSE 100 Index almost dropped into "official" bearish territory, having shed 18 per cent with significant losses last month. An uneasy truce held over the past three weeks, with prices consolidating in what we shall call the "danger zone" because hardly any trading occurred here since early 2013. A weekly close below 6,000 points would probably tip the balance, leading to more sharp losses to 5,600 points. Depending on the speed of the decline, a slump to 5,150 points might have to be pencilled in. Note that other European bourses also look increasingly top-heavy.