To be honest we are puzzling why the FTSE is having so much trouble with its zone’s upper boundary.
On Friday it basically camped out on it all day with an hour’s excursion either side by 10 points (again please ignore the “official” open and low), and in fact the real time close was 7448.52.
There are no changes to the ratios today but there has been a lot of movement within them, the most significant is a major move by 7450-7550 to regain the NZ crown.
So if it goes near 7450 again not only would this be strike 3 but the decision may be taken out of the markets hands anyway.
Range: 7350 to 7450 or 7450 to 7550
Type: On balance definitely not bearish
The DAX continues to leapfrog its way up the ratio table, on Friday climbing from Y2 to the bottom boundary of its NZ, or the next rung up.
It did get as high as 12191 so it has been back inside its zone, presumably today if it continues this structured progression it will stay inside it.
Like London there are no changes in any of the ratios but unlike it there is not a lot of movement within them either, so there remains a great deal of Y ratio present as we enter the back 9 of this expiry.
As this week progress’s towards the rollover next week it will heat up and as the ratios have hardly developed from the beginning there is still a definite bullish ratio configuration.
Range: 11950 to 12150 or 12150 to 12250
Activity: Very poor
Type: On balance definitely not bullish