Investing.com UK - Financial Markets Worldwide
⚠ Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

FTSE 100 To Remain Under Pressure

ByThierry Laduguie
Published 16/06/2014, 08:09
UK100
-
US500
-

The decline in the FTSE 100 accelerated on Friday, and today we could see a small bounce before prices drop further. During the current decline the BTI (sentiment indicator) has continued to go up, this has created a bullish divergence (declining stock market on rising BTI). The bullish divergence is a warning that the decline will end soon and the advance will resume.

On Friday US consumer sentiment came in below forecast, but the real drag on the market was the rising tension in Iraq. This week we can expect more downward pressure on stock markets in the first half of the week, unless the violence in Iraq eases. Market participants are also cautious ahead of Wednesday's FOMC meeting, there are rumours that interest rates in the US could rise earlier than anticipated. Such a move would be negative for stocks.

The FTSE finally broke below a support line at 6803, this trendline could have been the lower line of a potential triangle pattern. Not anymore, the decline is now an impulse wave down. The FTSE is falling faster than the S&P 500 and the US index has yet to complete another leg down, therefore the FTSE could fall further is the next few days.

FTSE 100

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.