Today, the FTSE 100 slid below last week’s low, and from Friday’s high, the index was down by 15% by 8.30 am London time. As the trading session is about to end, the trend remains downwards in the FTSE 100 and will continue to be bearish as long as the index trades below Friday’s high of 5699.
A break to Friday’s high could be the start of a short-term bullish trend in the FTSE 100, and the index might be able to reach 5800.
Short-term traders and barging hunters might lift the index to around the 5400 level, which is a bit more than a 61.8% correction of the slide from Friday’s high before the risk-reward ratio favors the downside once again. As long as the trend remains downwards the price might be able to reach the August 2011 low at 4771, followed by the May 2009 high of 4522.
As for when the coronavirus panic will reside, I suspect that it might still take a few more weeks, as the markets are looking for Europe and the US to implement more measures to slow the virus spread. And even when they have implemented more restrictions, it will probably take three weeks until we see the growth in corona cases subside, as it did in China.