It started with the American session, where all the major indices from the Dow Jones, S&P 500, and NASDAQ, experienced the sudden and explosive downward move that left millions wondering what happened that caused such a turn of events as the lately these indices have been moving in quite the upward movement.

However, the situation was not contained to the American session but spilled over into the Asian session. The Hang Seng and Asian stocks plummeted from their levels as the poisonous environment seemed to hit the Asian stocks just as hard. This also led to the eventual leakage into the European open, where every single major stock index is experiencing a very bad day.

The FTSE 100 index is knocking on the doors of the 7,000 level which is a major psychological level and a break of it would dictate that the negative momentum will surely lead to the 52-week low of 6,866.94 which was reached back in March 26. What’s more, the index’s RSI is printing below the 20-level showing that the index is very much oversold and the time for a rebound is close at hand.

It’s a brutal open in Europe, with the large capitalization benchmark down 1.3% and a sea of red all across sectors. The rotation continues, with defensive stocks outperforming today and cyclical ones getting hammered. The biggest losers are coming from the real estate sector as U.K. Housebuilders are set to experience more pressure after Weak London data.

The FTSE 100 Spot Index is currently down 8.2% so far this year. It currently trades 11% below its 52-week high of 7,903.5 reached on May 22 and 2.7% above its 52-week low of 6,866.94 reached on March 26. Of the 101 constituents of the index, 77 have fallen, and 24 have risen.

FTSE 100 tries to break below 7,000 psychological level to continue downward spiral
FTSE 100 tries to break below 7,000 psychological level to continue the downward spiral

Currently, the best performers on the FTSE 100 are BT Group (+0.86% at £2.39); Mondi (+0.73% at £17.88); and Ferguson (+0.57% at £55.00). The worst performers are Barratt Development (-9.04% at £5.05); Hargreaves Lansdown (-6.52% at £18.21); and Scottish Mortgage Investment Trust (-4.81% at £4.43).