FTSE Rollover 20th July 2017
The FTSE managed it so recognition where it is due as it could not have been that easy, although as we mentioned the absence of the amber gambler certainly smoothed the path this time.
There was a slight moment of trepidation when the market got as high as 7442.84 but as we are now in the grey area it is not so relevant as whether or not that was a test of the upper boundary, but at any other time we would have said it was for the record.
Perhaps worth noting that the auction added 11.32 points but from our stance there is now no need for the market to remain within its zone even though it may well choose to do so.
Range: 7350 to 7450
Type: On balance decently not bullish
From here on in this expiry should exert an influence, the trouble is determining how much and that is why we always say today and tomorrow both but neither are in charge.
However for the first time we are seeing a strong signal that 7350-7450 may be the next NZ here, joining July, and as this is the grey area then the ratios can shift quite dramatically.
In July this index traveled 250 points between R1 and R2 so it is worth noting that as things stand here between the two R1 ratio levels it is an impressive 350 points and it is a 4 week expiry.
Range: 7250 to 7450
Activity: Very poor