FTSE slow to adjust but R2 drops in both Jan and Feb, today’s levels and comment.


The FTSE is still very much fixated by 7750 and after the early strength gave way had a good tussle with it all afternoon.

It did get down to 7744 at one stage then recovered and had a very tepid last half hour and in real time actually closed at 7747.18.

The auction got it back above, however they weren’t listening as after all that effort R2 has moved to 7800 as expected.

However, it is the rollover, the NZ hasn’t moved, so that’s a big miss, which is going to make the next few days to the expiry potentially very volatile.


Range:            7700  to  7800

Activity:          Average

Type:               On balance only just bearish




Rather interestingly the ratios have weakened slightly above the zone in Feb which has resulted in the identical R1 ratio bandwidth.

We suspect it will be far too much to ask to get some degree of similarity in the NZ’s as well, but at least it’s a start.

Very little to add at this stage but perhaps worth noting was at this stage in the Jan expiry the market seemed more in tune with the upcoming expiry than the one about to expire.


Range:          7700  to  7800

Activity:        Average

Type:            On balance definitely bearish



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January 17th, 2018 by