The good news is that the NZ has changed in the FTSE and without delay which is always for the best.
This has indeed altered the complexion of this expiry and if it wasn’t for the appearance today of Y2 at 7300 it would have flipped the entire Y ratio above the new level.
However it still leaves this market below it and therefore still in bear territory but R2 is still a critical level and now of course the significance of 7350 becomes very apparent.
Range: 7250 to 7350
Type: On balance only just bearish
The DAX set its stall out early with an open down 60 points at 12105, this was also significant as from the off it took this index below the bottom boundary of its NZ.
It is also worth mentioning that Y2 was at 12100 yesterday and the low was 12021, not to mention the close.
Therefore even though Y2 has slipped to 12050 we do not think that this new level will offer much support, but it could be a totally different story if this market does manage to test R2.
Range: 11950 to 12150
Type: On balance bearish