Stocks plunge for deeper correction risks – FTSE 100 Forecast

  • A more aggressively negative theme for risk assets over the past 24-36 hours as markets have reacted to a downbeat outlook for the US economy from the Fed on Wednesday.
  • This, alongside increases in the numbers of deaths and cases for the COVID-19 coronavirus is some US States has seen the major global chare indices plunge lower Thursday, having already dipped lower on Tuesday/ Wednesday.
  • This has seen significant support levels from the rallies from mid-May violated and indicates deeper correction risks for Friday and into next week.
  • Here we look at the futures contract for the UK benchmark share index, the FTS100 forecast for today and into the second half of June.

FTSE 100 day trade outlook: Plunge keeps risks lower

A plunge Thursday through many supports as low as 6000, down to 5966, to reinforce Wednesday’s selloff before and after the FOMC decision (to close the bull gap at 6248-39) to signal a more significant top and more negative theme, to aim lower Friday.

  • We see a downside bias for 6005/6000 and 5966; a break here aims for 5926, a key level at 5885 and maybe 5844.5.
  • But above 6115/6120 opens risk up to 6170.5 and 6215, possibly 6244.5.

FTSE 100 intermediate-term outlook

The early June rally to close the runaway bear gap from early March at 6282-6397 signalled an intermediate-term shift to a broader range seen as 6871.5 to 5651.

  • Upside risks: Above 6871.5 sets an intermediate-term bull trend to target 7000, 7439.5 and maybe 7629.5
  • Downside risks: Below 5651 sets an intermediate-term bear trend to target 4733, 4701.5 and 4500.

Daily FTSE 100 Chart

ftse 100 chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

A bigger top still forming for stocks averages – FTSE forecast

An indecisive tone across global stock averages over the past 2-3 weeks.This has been as two competing influences have impacted markets; the belief in a strong re-opening of the global economy and ensuing demand for riskier assets versus the rise in new COVID-19 cases (particularly in the southern US states).Here we look at the UK benchmark share index future, our FTSE 100 forecast for today… Continued

Is the bear market rally top in? US COVID-19 cases weigh on stocks

Macroeconomic/ geopolitical developments Global financial markets continued the indecisive tone seen through mid-June into the end of the month, which has been in relation to competing forces; positive economic data/ strong retail demand/ support from the authorities on the one hand and the rise in COVID-19 cases on the other.The strong rally from mid-May into the first half of June, was driven to some extent… Continued

Stocks surge – FTSE 100 Forecast

The “risk on” phase has further extended from late May into early June, with global share indices again surging to new cycle highs Tuesday and already into Wednesday.The positive global view continues to be driven by the successful easing of lockdowns, the reopening of the European and US economies, and as of yet no signs of a significant second wave of the coronavirus pandemic.This is… Continued

Global stocks average selloffs signal topping patterns (FTSE 100 Forecast)

The “risk off” theme was reinforced on Thursday as global stock averages plunged through key support levels, confirming short- and intermediate-term topping patterns.Despite intraday rebounds, the damage has been inflicted, which likely leaves risks lower for today and into the second half of May.Here we focus on the futures contract on the UK benchmark average, with our FTSE 100 forecast.   FTSE 100 day trade… Continued

Stock indices bounce with Oil, but stay vulnerable (FTSE 100 focus)

A small rebound for the major share averages over the past 24 hours, as the oil market has stabilised, and the oil futures price has rebounded.However, this has not necessarily switched the theme from “risk off” to “risk on”, with global stock indices still suffering from losses inflicted earlier this week.Here we spotlight the future on the UK benchmark equity index, the FTSE 100. FTSE… Continued

Forex Brokers in your location