UK FTSE 100 (.FTSE) tumbled to its lowest in more than two months after the yields on 10-year U.S. and UK government bonds fell
Britain’s FTSE 100 tumbled to its lowest in more than two months on Wednesday after the yields on 10-year U.S. and UK government bonds fell below two-year equivalents for the first time since the financial crisis, signalling mounting fears of recession.
The FTSE 100 index .FTSE, already under pressure from weak Chinese economic data, ended down 1.4%, with losses across all but one sector. The midcap index .FTMC fell 1.5% to a six-month low.
The yield on the 10-year gilt GB10YT=RR fell below that on the two-year GB2YT=RR shortly after 1000 GMT for the first time since 2008, a so-called yield curve inversion traditionally taken as a sign that markets expect a recession.
That battered the FTSE 100, taking its fall so far this month to 5.8%, which would be steepest monthly decline in four years if it remains at that level for the rest of August.
Stocks fell elsewhere, with the mood on Wall Street equally gloomy as the U.S. treasury yield curve also inverted.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 7,360.52.
The projected upper bound is: 7,318.45.
The projected lower bound is: 6,974.42.
The projected closing price is: 7,146.43.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 41.3948. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.45. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -79. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 8 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -103.020 at 7,147.880. Volume was 14% above average (neutral) and Bollinger Bands were 112% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,275.14 7,439.02 7,191.61
Volatility: 22 15 15
Volume: 842,629,952 704,904,960 738,346,240
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FTSE 100 INDEX is currently 0.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .FTSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 8 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.