As I did an analysis on downside to potentially come for the S&P500 yesterday, looks like the FTSE is following suit.
If they don't sort out these issues, we could see a 600 points crash for the FTSE...
Here are some reasons...
New U.S. Tariffs:
President Trump imposed a 25% tariff on imports from Mexico and Canada, and increased tariffs on Chinese goods to 20%, sparking fears of a global trade war.
Oil Price Drop:
OPEC+ announced plans to boost oil output in April, leading to a 3% decline in the oil and gas sector.
Weak UK Construction Data:
The UK construction sector faced its most significant downturn since 2020, with the PMI dropping to 44.6 in February, indicating contraction.
Corporate Disappointments: Companies are reporting worse than expected results which is resulting in a lack of confidence in investors.
Melrose – Weak revenue forecast
WPP – Revenue decline, flat 2025 outlook
Quilter – £76m compensation hit, loss reported
Glencore – Lowest profits in 4 years
Shell – Weaker-than-expected annual profits
JD Sports – Multiple profit warnings, stock drop
And the technicals speak for themselves.
We see an M Formation, with the price reaching the neckline. If it breaks below, we could first see the price head to 200MA along with a further crash to 7,992.
We are seeing a pattern with these indices and either this will play out or something drastic will shock the world and will go back to all time highs.
Right now, it's not looking good.
If they don't sort out these issues, we could see a 600 points crash for the FTSE...
Here are some reasons...
New U.S. Tariffs:
President Trump imposed a 25% tariff on imports from Mexico and Canada, and increased tariffs on Chinese goods to 20%, sparking fears of a global trade war.
Oil Price Drop:
OPEC+ announced plans to boost oil output in April, leading to a 3% decline in the oil and gas sector.
Weak UK Construction Data:
The UK construction sector faced its most significant downturn since 2020, with the PMI dropping to 44.6 in February, indicating contraction.
Corporate Disappointments: Companies are reporting worse than expected results which is resulting in a lack of confidence in investors.
Melrose – Weak revenue forecast
WPP – Revenue decline, flat 2025 outlook
Quilter – £76m compensation hit, loss reported
Glencore – Lowest profits in 4 years
Shell – Weaker-than-expected annual profits
JD Sports – Multiple profit warnings, stock drop
And the technicals speak for themselves.
We see an M Formation, with the price reaching the neckline. If it breaks below, we could first see the price head to 200MA along with a further crash to 7,992.
We are seeing a pattern with these indices and either this will play out or something drastic will shock the world and will go back to all time highs.
Right now, it's not looking good.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.