The October expiry in the FTSE is off to a great start, which for a 5 week expiry is rather unusual as the first “extra” week can often be quite dull and boring.
However if it was going to ever break its zone bound stalemate it was always going to have to grow a pair and the last 2 days, the grey area, is exactly the time to do so.
It is very easy to remember the ratio levels this time as there are so few of them, but there is one not on the table, 7150, which is what we call a step-up.
Basically at 7150 the ratio is just below the DR threshold whereas between this level and 7250 it is just above the R3 threshold.
Nevertheless starting in R3 having spent the last 4 weeks in zero ratio will come as a surprise and makes 7250 a really critical level.
Range: 7050 / (7150) to 7250
We have got the move up in the NZ in the DAX but it looks like they couldn’t decide exactly where so we now have a huge 200 point zone.
Although this ratio configuration reminds us of the UK over the last few votes (snap election besides) and whether it is by complacency, over confidence or just plain fence-sitting the end result is no ratio, highlighted by the very wide zone.
In plain numbers the distance between the R1 ratios is 1100 points and it just makes the threshold for R2 on both sides but they themselves are hardly close to the R1 levels so it won’t be dull this expiry for sure.
Range: 12350 to 12550