Even though 7250 was just part of the R2 ratio bandwidth yesterday in the FTSE it didn’t stop it from treading very gingerly around it first thing.
Once it realised it had lost its Monday sting it was happy not to go near it again for the rest of the day.
However the ratios continue to fall below the zone and with R1 appearing our old friend 7250 has now emerged as remaining at R2.
The only difference for us is that this narrows our trading range.
However we hope that this is just realignment at the start of the expiry, to adjust for how deeply the market started below the zone, but any further weakness would now be a cause for concern.
Range: 7250 to 7350
The DAX actually opened down just 3 points in one of the smallest changes for a long while, but significantly still above its upper boundary.
It then spent the rest of the day back inside its zone although also significantly not testing the bottom boundary, and only getting back above the zone in the closing bar.
Interestingly in one of those coincidences we don’t like the real time close on both days this week has been 12564.
Anyway just days to go until the election and there is still 900 points of Y ratio so whatever happens it will be wise to buckle up we suspect.
Range: 12450 to 12550 or 12550 to 12850
Type: On balance just bearish