FTSE April to May Ratio Rollover Table 20th April 2018
Poor old London as this will smart a bit, but as we said “The trouble is that this is rather early, so it could be tough to keep it inside the zone for so long, made all the harder we suspect because of how the expiry is shaping up over in the US”
In fact, we think the FTSE could have coped with the US’ s stampede to their respective zones, it was the mining sector on Wednesday that it couldn’t cope with.
This is a huge sector, and if the whole thing goes it has the weight and momentum to crush derivatives, which were just biding their time anyway, so stalled in neutral as it were.
Still it should make for an interesting expiry.
Range: 7300 to 7450
Type: On balance decidedly bearish
Big changes in May so the overall picture has changed considerably.
The most obvious is the zone has dovetailed with April’s, which also removes that weight from around its neck.
Also, don’t forget when April started it was so far below its zone it started with several tests of R3 at 7050 before going on to test DR at 6900 after which it began its long climb back up to its zone (and now above of course).
So, as it stands, it looks like May will start life above its zone but this makes today’s close and whether it is above or below 7300 crucial.
Range: 7250 to 7300 or 7300 to 7350
Type: On balance only just bearish