Pre Market Open

Yesterday's broad selling saw the FTSE 100 yield almost 2% to lose the 5800 level and test recent lows around the 5770 level: this has been tested several times since this was last breached in June of this year and is a key level of support. Pre market UK futures are weaker suggesting that this level may fail but only the cash open will confirm this. The FTSE 250 fared better down 0.9% and holding above its 50 MA and 21 EMA maintaining an overall bullish to neutral bias compared to the mega caps. Meanwhile the small cap AIM All-Shares remains bullish closing flat on the day but slipping below its 21EMA for a second close: typically more that two closes below a 21EMA signals a break in a short term trend so we watch the 4920 level in Aim All-Share for further clues

As highlighted yesterday, gold did break out touching the 1932 level before pulling back to the 1916. This is likely to be bolstered by any further dollar weakness and risk-off sentiment though the lack of follow-through on the breakout may signal more weakness: gold is currently below its 50DMA and has been in a corrective/consolidating mode since  broaching $2000 in August . As also highlighted yesterday,  Brent sold-off losing 2.4% on the day to test the $42 level and its 200MA.  There may be further pressure to the downside if macro Covid fears suggest further restrictions on movement and economic activity. The US saw only muted selling with the the major indices off 0.1-0.3%.

The VIX moved back below the 29 level and the CNN Fear and Greed index held around 63: these suggest that recent weakness is likely to be bought. Similarly bullish is copper's upward trajectory as it made new multi-year highs overnight

31 Companies reported in the UK this am with ULVR,  IAG, POLY, RTO in the 100, AJB, SXS and TPK in the 250 and a slew of AIMers