FTSE all back to normal, July to Aug ratio rollover table with levels and comment.

FTSE Jly to Aug Ratio Rollover Table

The battle in the FTSE was fought on Thursday, which was when they managed to hold onto their zone, albeit just.

In fairness, we thought the market might have put up more of a fight on the Wednesday when it had 100-points wiped off it as it dropped straight back out of its zone, or below 7650.

So, although the next day only managed to recoup 59 of those points it was very significant that the close was 7651.33, which was an important battle with the real time close of 7654.31, to stay above the bottom boundary and still in their zone.

This is the rollover week with the expiry on Friday so being in its zone is where it should be, by it is evidently struggling so it could be a real test this week.

Range:            7650  to  7750

Activity:          Moderate

Type:               Bullish

At the end of the June expiry our comment was “So, the question is whether or not it is safe to get back into the water in July? Sadly, the answer is no…”

But looking forward to August and the answer is a resounding yes.

OK the zone is 100-points below July’s but there is plenty of Y ratio around, so that should mean the return of some decent moves.

For the record the last day of the June expiry this index opened at 7765.79 and closed at 7633.91, so not a lot in 4-weeks, and was exactly what we meant, but this is made all the worse as in the US it has been a trader’s paradise with well over 8% on offer in the NDX for example.

Range:          7650  to  7750

Activity:        Average

Type:            Neutral