Nb. Our comment from the 06/15/20 (Not published for the July expiry)
Nb. Our comment on 06/22/20
Certainly, an exciting end to the June expiry, and they almost even got back to their zone, or at least, got a lot closer than we ever imagined they would.
More important, is the next expiry, which is July, and which runs until the 17th being a normal 4-week trip.
And that is about the end of the good news, if you are a bull that is.
Actually, that’s not quite true, as the SPX has the awesome range (when we last calculated it) of 2795 all the way up to 3305, so it may lend a hand on this side of the pond, depending on which way it chooses.
The most important and noticeable aspect of the London benchmark, is its zone, which is way down there at 5950-6050.
It is fairly well supported underneath there with some decent ratio levels, so it is not out of the question that it could move up.
However, a far more pressing concern of ours, is the proximity of R1, as at 6350, it is just 60-points above the current market.
Of course, this index has taken on, and beaten R1 before, so we can’t rule this out.
But, for those of you with a low level of risk tolerance, the corresponding R1 doesn’t appear until 5850, so to say it is lop-sided, is a serious understatement.
We will know soon enough, but just a quick glance at the above table, will tell you that there is an awful lot of Y ratio present, and 90% is all below this index, and that is a major worry for us.
Range: 6050 to 6350