Officially the open in the FTSE is always the same as the previous close for some reason known only to themselves, but in the real world we had it up.
The market then managed to get itself as high as 7580.95 but it was obviously making heavy weather of it and no wonder as it had to wade through R1 ratio, which was a new experience for it this expiry.
Of course, there is still that wall of DR ratio waiting for it but we should mention that 7600 is just below the R2 threshold today so if the market goes there it may well have an impact.
We think it should as it fought (again) so hard towards the close (again) to get back and stay above 7550, which also makes today’s open crucial (again).
Range: 7450 to 7550 or 7550 to 7650
Rather bizarrely the 40-point move in the DAX on Friday has proved rather crucial.
As the ratios above the zone continue to fall, although the rate of change has slowed considerably, this move kept it in R1.
For what it is worth this makes the open critical, although this index doesn’t seem to mind R1 at the moment.
With this in mind this index now has a 1000-point trading range between the two R2 levels with the fun two weeks here, so hang on.
Range: 13050 to 13450 to 13450 to 13750
Type: On balance only just bearish