FTSE 100: Is still some way off challenging any key support. The first support level to monitor is 4800 and this is likely to be tested. However, critical support is not seen until 4600 and 4517.

Equity markets had a dour session despite the fundamental data still pointing towards an overall recovery in the global economy. However, after the resilience of Monday, investors have remembered that this is September a usually soft month for equities. According to Bloomberg, since 1928 equity prices have fallen by an average of 1.3% during the month. So trepidation and a reluctance to be caught the wrong side of the market is now encouraging some profit taking after the substantial rallies seen since March. So far, the key indices have not broken any significant support level and therefore they all remain in strong third wave trends. There is also a wall of money sitting on the sidelines which is still ready to be invested and it will be interesting to note how long investors wait until they start buying on the dips.

Today, early employment reports from the US provide the key interest as economists start to adjust their forecasts for US non-farm payroll data on Friday. The market has already priced in a further deterioration in unemployment which is a lagging indicator for the economy; although, the pace of the decline is expected to contract.

Sources: Reuters: BBC: Bloomberg: Lawshare: Deutsche Bank (db): Proquote: Financial Times: Wall Street Journal: CLSA: Sharescope: Market News. Capital Economics: CNBC: Wikipedia:

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