We have to profess to some surprise in the FTSE as they have managed to close above their zone, but bravo.
For the first couple of hours it looked like they were scared of it, then they camped out on it for about the next 5 hours, and eventually managing a little spike in the closing half hour or so.
Hardly convincing or aggressive but above is above regardless and no matter how they won the bulls deserve it, if only for persistence and perseverance.
However R3 is now waiting to ambush them and it may also be worthwhile considering where every other market is in relation to their ratios.
Range: 7450 to 7500
Of course the DAX was closed yesterday so just to repeat the pertinent parts for today; “as you can see it has moved today (R1), as has R2, but it is now just a question of whether or not it is comfortable taking on the R ratios and on yesterday’s evidence no it is not but currently it also doesn’t want to take a backward step, which is probably just as well as it is on a cliff-edge”.
Again we should repeat what we say above as it may not be this index’s choice alone as London is pushing up against some serious levels of ratio and in the US they too are either walking up the path or knocking on the door of ratio levels that will be noticeable.
Range: 12550 to 12900 or 12900 to 13050
Type: On balance bearish