FTSE & DAX Ratio Table 5th Feb 2018
It has certainly been an interesting week for the FTSE and when we last published (Monday 26th Feb) we were looking for it to get back into its zone.
And the first two days of last week were all about that, so much so it looked to us very relaxed and happy being in there.
Wednesday changed all that, although it did put up a stalwart fight, only losing in the closing half hour, and really because of the weakness from the US.
Up until today there has been no change to the ratios below the zone, so on Thursday the next level of support was DR at 7150, which it hit, with the low of 7153.39 before closing at 7175.64.
This is not only important to gauge how the market reacted to the dynamic delta at this level, but also as it helps to explain Friday.
Officially the open was the previous day’s close, 7175.64, but in the real world it was nearer 7100 after the Street’s continued big losses, so easily below this DR level.
On Friday B1 was at 6950 and so the change today is the first below the zone all week.
Worth noting the low and close on Friday was 7063.42.
On top of this, quite literally, however are the huge changes in the ratios above the zone, the most significant being the appearance of Y1.
So, if it gets a fair wind from the other exchanges it is looking very good for the FTSE, in fact we could even see a big jump up in the zone, and quite possibly to 7450-7550, which would make for a very exciting end to this expiry in two weeks’ time.
Range: 7050 to 7150
If anyone was in any doubt regarding the opening weakness in the markets of Friday here in the DAX they began with a loss of 139-points.
And very shortly after that it went straight down to R3 at 11950, which eventually yielded but only after a very decent battle.
And rather ironically the DAX is now in the same position, almost, as London, but from a totally different starting point, and also here all the ratio changes are below the zone rather than above it like the FTSE.
This index was already happily within its zone on our last analysis, and had been for some time, but it was for the same reasons it broke down out of it on Wednesday, and then only by 15-points, hardly anything.
This in itself was a little surprising, as on the Tuesday the high on the DAX was 12577 and the low 12436, which was a classic zone bandwidth test, so a breakout the next day was only to be expected.
However, on Thursday the low was12143, and if you check back to Monday’s table you will see R2 was at 12150 before closing at 12190.
However, on Friday it has gone altogether, leaving the next line of support at 11950.
March is quickly turning into a typical triple witching expiry where it is normal for it to take on the higher levels of ratio, and even better we are just at the halfway point.
Worth taking note of, as this index is far more correlated to the US, that the DJX hit R1 at 24200 on Friday (low 24217) as did the SPX, with their R1 level being at 2645 (low 2647.32).
Furthermore, both the DJX and NDX closed inside their respective zones, having bounced very nicely, and the SPX was just 3.75-points shy of their bottom boundary.
Talk about synchronicity.
Range: 11750 to 11950 or 11950 to 12250