Nb. Our comment from the 02/21/20
March expiry not published.
Nb. Our comment on 02/26/20
We made a point out of saying the FTSE had been zone bound for the entire Feb expiry, even when it was knocking on the upper boundary at 7650 at the very start.
Of course, the March expiry on the 21st was not published, but as you can see the zone was 7200 to 7300.
So, the FTSE did remarkable well to expire in its zone on Friday, the EDSP was 7417.38 out of interest, but March was again different.
So, the zone at the start of Feb was 7550-7650, and it moved to 7400-7500, and now you have March kicking off at 7200-7300.
The fact that Monday closed at 7156.83, meant it had already overshot, and, therefore, was in trouble.
There is a step-up in the ratio at 6950, hence why it is in brackets in our range.
Also, the top is where B1 starts, so could provide some resistance.
However, we would anticipate this being rather minimal, as given half a chance, this market should erupt out of from being in the B ratios, like a scalded cat.
If it doesn’t make it soon, it means this trip is going to be one very hard slog through this level of ratio.
Range: (6950) to 7050
Type: On balance bearish