Well we got a sharp pullback in the FTSE just not quite enough to effect the change in the zone, but really you couldn’t come closer.
In fact so much so that we would expect it to be 7350-7450 tomorrow but now 7250-7350 is stating its case and that would shake this index up considerably.
Even without these changes Y1 now stretches for 200 points so the last couple of days are probably just the warm up and the main event is yet to start.
All the ratios are weaker below the current zone, and considerably so, therefore a quick move would be in everyone’s interest.
Range: 7250 to 7450
If anything the abyss for the DAX just got deeper and the only crumb of comfort is that activity remains bullish.
On the flip side if the DJX’s exuberance cracks it really could get very messy here.
The NZ has dropped but more importantly so have the ratios below it, not only making further falls likely but if this market picks up any momentum then its saviour of late, R1, which is now down 200 points from the first encounter, is unlikely to be enough.
Range: 11950 to 12350
Type: On balance bullish