That was a very impressive test of R2 yesterday in the FTSE giving up 25 points in just 5 minutes plummeting to 7249.58 before taking a bit more time to recover back to where it started.
Sadly though it seems the realignment is not over and there are big changes again below the zone, which does however make it rather easy to remember the levels now.
This leaves this index in a 200 point R2 ratio bandwidth courtesy of maintained high levels of activity.
However we would say do not forget 7250 as one way or another every day so far this expiry it has proved crucial.
Range: 7150 to 7350
Activity: Very good
In the DAX when we said “and there is still 900 points of Y ratio so whatever happens it will be wise to buckle up we suspect” we didn’t mean yesterday specifically.
There will be a spark and whether it is the US and/or the Fed or even their domestic elections there is hardly enough ratio present at all to stop a major move in either direction which is what we are referring to.
Even if R1 proves pivotal, which is possible, then there is still a 900 point Y ratio bandwidth which in itself should be enough to reach for the seatbelts.
No change to the ratios today and still poised just above its zone.
Range: 12450 to 12550 or 12550 to 12850
Type: On balance bearish