The FTSE had every opportunity to follow the lead of almost every other index but chose to hibernate around the middle of its zone.
Considering last Monday when it tested the upper boundary (high 7542.00) and on Wednesday it tested the lower boundary (low 7437.42) so it definitely knows what’s where.
The only conclusion we can draw is that it has retreated back into its shell like the September expiry where over the 4 weeks of that it only ventured out of its zone on the very last 2 days, the grey area.
Range: 7350 to 7450
The high of 13249 in the DAX just does not do justice to how hard it fought with R1 on Friday.
Not forgetting that on the Thursday (high 13144) it had to do battle against Y2 so it had already come out fighting opening up 53-points but more importantly above 13150 at 13186.
There were at least 5 tests of R1 and 4 were very noticeable spikes.
More importantly today and R1 is still there so watch out for the open, and with R2 strengthening it is now backed up with the last level of ratio, so today will be crucial.
Don’t forget last expiry when it hit R1 it just stalled and basically stayed at 12900 for the remaining 3 weeks.
That’s probably the best outcome because the corresponding R ratio is still a very long way away at 12650.
Range: 13050 to 13250 or 13250 to 13300
Type: On balance just bullish