Regency View:

Morning Report – Wednesday 21st April

FTSE to open at 6,882 (+22 pts)

Wall Street posted its first back-to-back losses since March as the S&P retreated from all-time highs following a rise in global COVID-19 cases.

The bearish sentiment has continued into the Asian trading with Hong Kong’s Hang Seng and Japan’s Nikkei down nearly 2% on the session.

European stock futures are positive, but this represents a small bounce following yesterday’s heavy losses.

?Risk Barometer Explained

We mentioned in yesterday’s Morning Report that the FTSE needed to hold above the broken resistance area at 6,961 in order to maintain the integrity of the market’s recent uptrend.

The market failed to do so and instead broke decisively below its ascending trendline – changing the short-term momentum dynamic from bullish to bearish.

In terms of support, there is short-term swing low support at 6,854, but given the change in momentum, we’d expect this to break. The next major support for the FTSE comes in at the 6,800 broken resistance / ascending trendline area.

FTSE 100 Daily Rolling Futures – Key Levels