Review & Plan - Monday


Friday's quad witching saw a contracted range inside Thursday and above Thursday's open. The prior day's profile anomalies were repaired and settlement was at 2059.00. Underlying share volume was high on NYSE at 5bn with the June share option expiry.

The day session range stayed mainly within the short term bull/bear zone and initial support.


The weekly volume profiles below show the gap open today with last week's high at 2089.25 next key resistance followed by the composite low volume area at 2094-96, which also coincides with the value area low from the week beginning June 5th.

The range is currently 2070.25-87.50, with the trend rising steadily from the low at last night's open.

The change in short term sentiment to 'risk on' has been driven by Brexit polls now showing more balanced voting from a previous leave gain, and German PPI exceeded expectations. 



The overnight move and likely large gap to Friday on the open is likely to leave shorts stuck and the strong possibility of a P shaped profile today. 2079.50-81.50 is the bull/bear zone for today, though I would expect responsive buying at the first three support zones below. Above last week's high we may see an acceleration of the upside into the 96 area.