That was a truly heroic effort by the FTSE to get over 7250 yesterday.
From the very start it tried, then on many more occasions throughout the day eventually having to rely on the last bar and hanging on in the auction, which incidentally cost 4.03 points.
No doubt they are up for it though judging by the activity, but sadly all that effort yesterday was in the end unnecessary as R3 has slipped to 7200 today.
In fact we would say that 7200 is a tentative R3 and 7150 is a far more solid level.
Nevertheless it is now in R2 which is now quite a wide bandwidth.
Range: (7150) / 7200 to 7350
Activity: Very strong
The DAX was off to the races from the whistle opening up 75 points, which more importantly put it above its NZ.
It thereafter struggled throughout the day and eventually closed just fractionally above the upper boundary, making today’s open critical.
However activity has come storming back and has sorted out the NZ to the more conventional 100 points and the ratios either side have come in, but as one can see it is still only a start as that remains a huge amount of Y ratio.
Range: 12450 to 12550 or 12550 to 12850
Type: On balance just bearish