Nb. Our comment from the 05/22/20 (Not published)
Nb. Our comment on 05/27/20
Well there is no denying it, but London was, and to an extent, still is, in a mess.
Well, ratio wise at least.
When the FTSE closed the May expiry, on the 15th May, at 5799.77, but far more importantly, having traded down as low as 5741.54, we reckoned it could be an explosive start to the June expiry.
The point being, that the mighty DR ratio, was down there at 5750.
Obviously, we were therefore not disappointed or surprised, by the huge leap up of 248.82-points to 6048.59 on Monday 18th May.
It then stalled, but was happily now at the top end of the R3 ratio bandwidth.
Yesterday, we saw the intraday high of 6130.12, and being at the end of a 136.84-point early morning jump, this was very probably a test of 6150.
Today, 6150 is now R2, so it really just depends on how much of a bloody nose they got.
The zone should probably be 6450-6550, but things have moved so far and so fast, the market simply has not adjusted.
Sadly, the FTSE is caught in some heavy ratio bandwidths, severely restricting its movement, which is the absolute opposite of the SPX, which has happily utilised all its vast swathe of minimal Y ratio to get back over 3000.
Two very different markets, courtesy of very different ratio profiles.
Range: 5950 to 6150
Activity: Very poor