If we had to describe the FTSE in a word it would take no time to choose “boring”.
We fully understand and appreciate why it doesn’t want to go near 7250 again but what we can’t fathom is why it is so reluctant to even approach 7350.
Furthermore with this total lack of motivation or achievement comes the level of activity that we see today, and just to rub salt into the wounds the Oct expiry is historically one of the exciting ones.
In a rough brushstroke activity and momentum/aggression should build throughout the year ending in the Dec crescendo.
Range: 7250 to 7350
Activity: Did not register
At last now we are getting somewhere in the DAX, although that was rather lame to say the least.
The high yesterday was 12685 which was a test of Y2 and the market really didn’t look comfortable coming up against it having languished just below for most of the day up to then.
We are talking only Y2, so it is still a minimal ratio level, but it is also the first increment in ratio however minor it has encountered so far this expiry as it has spent the expiry up to now just above its zone, and as such this is the first insight we have had as to the sensitivity of this market this expiry.
Range: 12550 to 12850