FTSE 100 live outlook prediction analysis for 29th October 2020
Panicking traders wiped almost £40bn off the value of Britain’s blue chip companies and markets plunged around the world as a second wave of Covid sent Europe careening back towards lockdown. The FTSE 100 closed 2.5pc or almost 150 points lower at 5,582, its lowest level since early April. Shares fell in 98 of the index’s 100 firms as all industries were swept up in the sell-off.
France’s Cac 40 fell 3.4pc and the German Dax sank 4.2pc – the worst declines for Paris and Frankfurt since late September.
Wall Street joined the carnage, with a 3.5pc fall for the S&P 500 – the biggest one-day slide since June – and a similar slide for the Dow Jones Industrial Average to chalk up its worst losing streak since February. The technology-focused Nasdaq index shed 3.7pc.
The US dollar rallied as fear once again gripped traders, prompting a widespread rout that hit mining and financial firms particularly hard. The pan-European Stoxx 600 index fell 3pc to its lowest level since May, while Brent crude oil sank below $40 a barrel on fears of a further hit to demand as normal life is once again put on hold.
Uncertainty ahead of the US election and fading hopes for a long-awaited stimulus package to support struggling families compounded fears for the future.
Europe On The Brink
Europe’s leaders imposed harsher pandemic measures as the virus roars back across the continent. Spain, Italy, the U.K., Greece and Portugal all reported record numbers of new cases on Wednesday. French President Emmanuel Macron ordered a new national lockdown, though schools will remain open, while German Chancellor Angela Merkel will impose a one-month partial lockdown in Europe’s largest economy. Melbourne, the city that locked down for three months, may have a bleak lesson for them. Meanwhile, Anthony Fauci said vaccines won’t be available in the U.S. until January at the earliest. Even U.S. President Trump acknowledged certain areas are “heated up right now.”
Markets Crash
Asian stocks looked primed for losses after shares tumbled in the U.S. and Europe, as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic. Futures pointed lower in Japan, Australia and Hong Kong. The S&P 500 lost 3.5% for its biggest drop since June, while a gauge of U.S. equity volatility surged. The dollar rose against every G-10 peer save the yen, with the Aussie among the weakest performers. Treasuries were little changed, while gold declined. Oil fell more than 5%.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks dropped Thursday after shares tumbled in the U.S. and Europe, as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic. U.S. futures rebounded from the worst of the overnight declines.
Losses were more modest across Asia than in the American session, with shares in Australia faring worst and those in China rising. S&P 500 contracts climbed about 1% after the benchmark lost 3.5% Wednesday — its biggest drop since June. European futures also gained. The dollar gave back some of its overnight advance and 10-year Treasury yields held around 0.78%. Oil was steady after tumbling more than 5% on concern rising infections will sap demand.
After the bearish day yesterday we may see a bit of consolidation today. That said the fear is strong (why its surprised that a second wave is kicking in I am not sure as it was inevitable). The S&P has climbed a bit off its lows from yesterday so far, and the bulls will now be keen to defend the 3300 level. If they manage a slight uptick today then 3342 is the 2 hour resistance level of note, so a rise to that area would fit quite well. The 30min chart is bullish to start with after the future strength and we will need the 3303 level on that time frame to hold. A break of that will likely see a slide to 3285 again, with S1 at 3247 below that. And then we get really bearish!
For the FTSE, the bulls will need to push past the daily pivot at 5600 today, to target the fib level at 5634. There is going to be depressed buying at the moment as we get towards the election and also the stimulus “fears”. That said they may well be helped a bit by this rise in the futures overnight. Above 5634 then 5707 is the 200ema on the 30min and a rise towards that may well take place. That would be quite the reversal of yesterdays drop though so seems a bit of a big ask for today. I am expecting a bit of a consolidation day today.
Initial suport is on the 30min chart at 5570, with 5550 below that. We have the key fib there, and possibly a colour change brewing on the coral line to green, which will lend a bit of support. Below 5550 S1 is down at 5482 and would be the target for the bears if they break 5550.
So, could be an interesting one today, either more selling or a bit of a consolidation. I’d like the price to get above 5600 ideally today, but I cant see too much bullishness at the moment. Still remain cautious for the moment, and lower stakes can be prudent. Good luck today.
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