- Again, a very aggressive selloff in the past 24 hours for global stock markets as equity investors head for the hills, with buying of safe haven bonds.
- The driver remains fears of a significant the global economic slowdown from the wider spread of the coronavirus outside of China.
- Global equity averages are plunging through Q4 2019 support levels and even lower supports.
- Here we focus on the future on UK benchmark average, the FTSE 100.
FTSE 100 Future day trade outlook: Very bearish!
A Thursday plunge lower again through supports from January 2019 to yet another new bear trend low and aggressively lower again overnight down to 6534, to reinforce Wednesday’s very aggressive plunge, to keep risks significantly lower Friday.
- We see a downside bias through 6534 and 6500, then 6475; a break below aims for 6435 then 6400, maybe 6377 and 6300.
- But above 6600/05 targets 6666.5; above opens risk up towards 6695/6700 possibly 6743 and 6783.
FTSE 100 intermediate-term outlook
A late February plunge below 7164 set an intermediate-term bear trend.
Downside risks: We see an intermediate-term bear trend to aim for 6500/6475 and 6300.
What changes this? Above 7158.5 shifts the intermediate-term outlook to neutral and through the bear gap at 7295-7327 to bullish.
Daily FTSE 100 Future Chart