FTSE and DAX Ratio Table 26th September 017
The FTSE didn’t test the lower boundary of its NZ although 7350 still remains the next target having bounced off 7250 at least twice.
However being realistic circumstances translated from other markets will affect London so this will only happen if it gets free rein to do so.
A very decent level of activity has resulted in further changes in the ratios below the zone, which are evidently weaker and this has left 7250 now as the standout R2 level.
We would mention how pivotal this level was last week and has already provided support twice so another test would be strike 3.
Range: 7250 to 7350
Type: On balance bullish
We are holding our hand up as we really thought the DAX would react by more than 2 points.
Basically activity was decent throughout the build-up and yet there was still an ocean of Y ratio so the bases were loaded and for us it just needed a spark.
However this is still the case today so although any reaction will not now be immediate the argument from yesterday is still valid.
The R ratios below the zone have all come in significantly whereas above Y2 slips out a bit, both bullish, but the real story remains the 800 points of Y ratio still present.
Range: 12550 to 12850
Activity: Very good
Type: On balance bearish