FTSE Index falls to 10-year lows

It was another brutal day for equities, and the FTSE 100 index declined 10% during the London session as investors sold stocks despite the Fed cutting rates to 0% and launching a massive QE program.

The index is now testing what appears to be the last strong support before 2009 lows, and this horizontal demand support is seen at around 4,800 GBP. If this level is decisively broken to the downside, we could see a quick deterioration toward 2009 lows in the 3,600 zone. 

The current sell-off is much steeper and faster as investors are terrified, and the quarantine measures in the whole world will lead to a severe recession. What is similarly concerning is the fact that it looks like the Fed has lost control of the market, and equities are not rallying, despite massive stimulus. 

During times like these, support and resistances rarely work as these large movements are driven by margin calls, heavy emotions, illiquidity, and panic. It seems that the worst is not over yet, but so far, any rallies are being shorted, which could be an excellent way to play the ongoing decline. 

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