- A plunge lower Wednesday for the FTSE 100, the UK’s broad, benchmark stock index, with global share markets also plummeting.
- This has been in the wake of Tuesday’s very negative, US ISM Manufacturing data, highlighting a slowing US economy.
- Concerns that the US economy is now being impacted by the global trade war and economic slowdown have seen US equity markets selloff aggressively, with the risk for the already vulnerable UK and European economies and share indices being hit hard.
- The threat into mid-October is now or an even more significant breakdown for the FTSE 100.
FTSE 100 Future: Intermediate-term bearish shift
A very aggressive Wednesday plunge through 7165 for an intermediate-term shift to bearish.
This bearish activity keeps the threat lower for Thursday.
- We see a downside bias for 7052.5 and 7043; break here aims for 7021 and 7004/6999.5, maybe 6981.5 and 6962.
- But above 7089 opens risk up to 7135.5 and 7185.5.
Intermediate-term Outlook – Downside Risks: We see a downside risk for 6962.
- Lower targets would be 6835.5 and 6500/6479.5.
- What Changes This? Above 7288.5 shifts the intermediate-term outlook back to neutral; above 7406 is needed for an intermediate-term bull theme.
Daily FTSE 100 Future Chart