24th October 2018
Well that was a rather bearish day in the main! The bears nearly retested the recent low at 6920 before a US led rebound saw thew S&P climb from 2690 towards the 2750 level.
The FTSE 100 tumbled towards a seven-month low as a cocktail of worries sent global stocks sliding for a fifth straight day. Escalating tensions between the West and Saudi Arabia, the Italian budget row and the first signs of deteriorating corporate earnings in the US topped the long list of sentiment-bashing concerns driving markets lower.
The FTSE 100 slumped 1.2pc to below the 7,000-point milestone, led lower by its oil, mining and banking heavyweights. The index tumbled as much as 1.3pc while the DAX in Frankfurt plunged 2.6pc. A “poisonous brewing cauldron of geopolitical and economic issues” has dragged down stocks in Europe to their lowest level in 22 months, said Connor Campbell, a market analyst at Spreadex.
The sell-off later spread to the US after disappointing figures from industrial giants Caterpillar and 3M added to concerns over global growth and the impact of the trade war on corporate earnings. The S&P 500 slid as much as 2.3pc in intraday trade, giving fresh impetus to the drop in European stocks.
Meanwhile, U.S. stocks closed lower for a fifth day, as an afternoon rally from the lowest levels for the S&P 500 since May fell short of pushing benchmark indexes back into positive territory. The S&P 500 pared to 0.6 percent a loss that took it below 2,700 for the first time since July, while the Nasdaq Composite Index flirted with a correction before paring declines. Oil fell to the lowest level since August after Saudi Arabia pledged to meet any supply shortfall that materializes from Iranian sanctions. Ongoing concern over Italy’s fiscal situation helped drive 10-year Treasury yields as low as 3.11 percent amid heavy futures volume.
FTSE 100 Trading Signals, Forecast and Prediction
I am watching two key levels to start with today – 6983 for support and 7032 for resistance. Below this support then it feels like we will be on for a drop down to the lows again and probably 6900. Above the 7040 level then we should get 7075 again, with 7125 above that.
Membership
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
Results
I keep a record of all the trades communicated to members via the morning email trade plan and those alerted live. See the results here.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram Chat room and webinar group membership for discussion and realtime trade updates