When financial advisers say that the charts don’t matter, they don’t know what they are talking about. The chart of the Footsies showed huge warning signs of a drastic pullback when it was overextended in February of 2020. When price gets overbought or overextended, it becomes due for a correction. So, many of times major events are predicted in the charts ahead of time.

Obviously, the average investor doesn’t know what the news catalyst might be but there’s warnings of things to be concerned or cautious about. Especially going into an election year in the United States. The uncertainty of election years causes many investors to become cautious due to the uncertainty of who is going to become president of the US.

Whoever becomes president in the United States will have an effect on the Footsie as well as other markets around the world. Trade is very important around the world and the sensitivity of Brexit and US relations moving forward, so it’s important to keep an eye on the charts.

So, the Coronavirus and US elections are going to play a part on the FTSE 100 for probably a lot of 2020. Watch for reversal patterns and see if the buyers are going to come in and hold support levels. Again, we can’t stress enough the importance of learning how to read charts over listening to hype and speculation.