Big changes in the FTSE Ratio Table; update, levels & comment.

Nb. Our comment from 03/25/19

It is a real shame we didn’t publish last week, as it was blatantly obvious to us the FTSE was an accident waiting to happen.

The only surprise was that the FTSE got as far as it did, and 7350, or R3 to us, played a pivotal role last week.

The intraday high on Tuesday was 7350.10, on Wednesday it got up to 7341.57 for its second attempt, and then on Thursday, strike 3, it peaked at 7370.61.

However, the most telling aspect was the close on Thursday at 7355.31, and the fact that R3 wasn’t retreating, so the bulls were certainly keen, but, as we say, it was an accident waiting to happen.

Of course, had the other markets not been in similar circumstances, then the FTSE may well have gone on to test DR, but then it’s all about risk and reward.

Which to us, with a 200-point Y ratio bandwidth above a zone that is way down there at 6950-7050, the risks were certainly at the top end of the scale.

7250 is now the new critical level.

Range:            7050  to  7250

Activity:          Average

Type:              On balance bearish

Nb. Our comment on 04/09/19

And we were not wrong as 7250 dominated this index for that week, until Friday 29th when it managed to hold on for that all important close above it, at 7279.17.

The trouble is that when we last commented on the FTSE, an entire 10 trading days ago, the ratio landscape has transformed.

There is absolutely no point in guessing when, so we are just going to fast-forward to the end of the next week, Friday the 5th April, when the close was 7446.87.

More importantly, the intraday high was 7461.39, so we strongly suspect that was this index’s first pop at R3.

However, we would be remiss not to point out how huge the changes have been, and in fact, so much so, they have virtually flipped 180 degrees from the 25th March.

Although there is now Y2 above the zone, what was there back on the 25th is now below the zone, which itself has leapt 200-points to 7150-7250.

But, the real clincher, is B1 has gone from above the old zone to now being below it, which signifies that the entire ratio alignment has totally adjusted.

No wonder it has managed to eventually achieve what it was threatening to in that very first week.

We would fully anticipate 7450 to slip to R2, leaving 7500 as the next resistance level.

If this is the case then the trading range should be 7400 to 7500.

Then, it will be all down to the rate of change in the ratios, especially as the clock is ticking and the expiry is now fast appearing on the horizon.

Range:          7400  to  7450        or        7450  to  7600

Activity:        Average

Type:            Bearish

April 9th, 2019 by