Totally mundane day with the FTSE camped back inside its zone.
To be fair we thought it would enjoy the freedom of zero ratio more after the previous couple of days, but although it hasn’t really moved perhaps what it has done is to entice some fresh money back onto the table.
The ratios below the zone are restored to where they were previously, whereas above the zone we see Y2 for the first time.
Which means, should it go back there, it will find it a lot easier now.
Range: 7450 to 7550
The ratios continue to build below the DAX’s zone and weaken above it and from tomorrow we should start seeing some movement in the zone itself as well.
This has left this index back in the Y1 ratio bandwidth so just to clarify this currently stretches from 12850 up to 13450 and when you add Y2 to this it is 12700 to 13650.
This index may be being very sensitive currently but aggression is no stranger here, as is using up the entire bandwidth, the only difference is here it took QE to achieve what Trump has Stateside, but both are in a remarkable similar situation now.
So, before we hit the rollover it is perhaps worth reflecting on the fact that this index opened at 13014 on the first day of this expiry and even then the Y ratio bandwidth went from 12650 up to 13250.
Range: 13050 to 13650
Type: On balance bearish