Has R2 thwarted the FTSE bears for now?

Will R2 be enough to help the FTSE bulls.


Nb. Our comment from the 09/18/20 (Not published)


Nb. Our comment on 09/23/20


Well, don’t we feel a bit silly for not calculating the ratios here on Monday or Tuesday.

Obviously, there have been big changes since we last looked at them on Friday, the day the September expiry ended.

Of course, there has been a lot of activity, and where we have “very good”, it is worth mentioning that this is just a smidgen below the threshold of “strong”.

But the main reason we are a bit aggrieved, is we don’t know when the zone changed, or when R2 moved from 5850 to 5800, and now we never will.

Both rather pertinent so far this week, needless to say.

May not see it, but what we have noticed, is R3 at 5750 has been steady, and more than that, while R2 has obviously been slipping, this level has actually strengthened.

In fact, because of this divergence, 5800 is in clear danger of dropping to R1, which would make the jump up to R3 at 5750, all the more impactful.

If 5800 was R2 yesterday, and therefore because the intraday low was 5794.54, then the markets reaction to this, means that it should be even more pronounced when, or if, it encounters the dynamic hedge futures buying at R3.

Otherwise there is not else to say, as it looks a perfectly normal ratio table now, balanced, with the zone not far away, all aided and abetted by some decent levels of activity.  


Range:            5800  to  5900        

Activity:          Very good

Type:              Neutral



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September 23rd, 2020 by