That was rather bearish | 7015 and 6980 support | Fear is high | Brave bulls | Trading analysis

That was rather bearish | 7015 and 6980 support | Fear is high | Brave bulls | Trading analysis

11th October 2018

Wow, what a day that was yesterday as we saw some pretty major panic selling for the biggest fall since February. After the 7200 level broke on the FTSE 100 I didnt expect 7120 in such short order when I was writing the email yesterday however, we have seen an overnight low of 7015. If 7000 breaks then we are looking at 6978. and then 6900! The bulls have to break above 7130 now. Fear is at maximum, daily RSI is at 18, but its brave longs at these times!

U.S. stocks tumbled the most since February as a risk-off tone gripped financial markets, roiling technology and industrial shares. Treasuries rose with the yen amid demand for haven assets. The broad selloff took the S&P 500 to the lowest in three months, the Dow Jones Industrial Average plunged as much as 836 points and the Nasdaq 100 Index tumbled more than 4 percent for its worst day in seven years. All 30 members of the blue-chip index retreated, with Boeing and Caterpillar dropping at least 3.8 percent. Computer companies led the S&P 500 to a fifth straight loss, the longest slide since Donald Trump’s election win.


FTSE 100 Trading Signals, Forecast and Prediction

A break of 7015 will likely see S1 at 6978, and the bulls may well try to defend this to get the price back above the 7000 level. Doesn’t make good headlines ahead of a budget later this month if the markets are crashing!

Interestingly gold hardly climbed yesterday which it usually does during full blown panic.

If the bears break the 6980 area then I am full expecting the selling to continue apace, and we are likely to see S2 at 6900, with the daily RSI and other indicators remaining oversold.

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