Financial Spread Betting Markets Trade the Ranges
While individual equities are looking quite volatile the net effect on the markets is muted and the fear for many broking houses will be that the current market conditions continue through the year.
Historically this inertia is unusual and is normally ended by a big break out in one direction or the other. Whilst this will remain (probably) the eventual outcome it has to be admitted that it is difficult to see any such event happening in the short term.
- The FTSE 100 is stuck under 4100
- The S+P is stuck under 870
- The DAX is stuck at 4675
- Sterling is ranging between $1.4450 to $1.5000
- Yen cannot pass ¥¥100.00
- Gold remain in the $890 to $900 range
- Brent Crude Oil is still ranging between $48 and $54
While any attempts at the boundaries have appeared to have good chances of breaking out in reality any trade opposition of these levels has paid out handsomely to spread betting account holders willing to take the risk.
The FTSE 100 opened unchanged at around 3980 but has seen a steady drip drip of selling on the off and we have slipped back to 3965 at the time of writing. This is very much middle of the range and interest will probably not be pricked until we approach 3875 or 4030.
The Dow and S&P have slipped around 90 pips since the close last night as fears over the banking sector continue to swirl. The US indices have had a slow curve higher since the lows of early March but this is looking to be getting ready for some sharp action either up or down.
The 8000 level in the Dow seems to have an almost magnetic attraction. Since October last year every move seems to have been an attempt to break away from it only for the irresistible gravity of the number acting to pull us back. For the FTSE the same could be said for 4000 and for the S&P 850.0.
Financial Spread Betting Markets Trade the Ranges edited by James.
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