Two crucial levels for the FTSE coming up.

Nb. Our comment from the 12/19/19 (Not Published)

Nb. Our comment on 12/30/19

There are going to be quite a few nursing a sore wallet after the Dec expiry for sure.

The good news is that it hasn’t stopped them from playing in the Jan expiry.

However, that’s where the good news ends, as this expiry is rather messed up, and half days and closed days are not exactly helping get it sorted.

Bizarrely the zone has actually fallen, which is bearish, but at least this has put some Y ratio either side now.

The problem was the FTSE opened up on Monday at 7582.48, which meant it was above 7550, then around R3, but now R2.

On top of which 7650 has remained at DR, and this index’s intraday high on Friday was 7665.40, having basically traded the entire day up until the Street opened, in the narrowest of margins, between 7650 and 7660.

Conservative majority, Brexit, or whatever, in the Jan expiry this index should just not be taking on DR ratio.

In fact, it is in a remarkably similar situation to the SPX, in that all’s well as long as the bulls remain committed and willing to keep knocking on the ratio door until it gives way.

But, if there is a scare, then there is virtually no ratio support until you get down to 7150, a very scary 500-points away.

So, for us at least, the risk profile is very high, and 7550 is a massive level now, with huge implications.

Range:            7550  to  7650         

Activity:          Good

Type:              Neutral