FTSE & DAX Ratio Table 18th Dec 2017
It was a very aggressive end to the Dec expiry in the FTSE although this is far from unusual and this was also quite tame by comparisons.
Nevertheless, it means Jan starts outside its NZ, even though we are talking just Y1 it is still a bold start.
The first test therefore will be to stay above as the last few expiries have been all about being in their zone for the first three week.
Otherwise it will just be a question of the level of aggressiveness and as much of when, as this expiry has two shortened weeks and correspondingly thin markets which can cloud the matter and make for big moves.
Range: 7450 to 7550
Type: On balance bearish
The DAX is quite used to being outside its zone, below it is where it doesn’t like to go currently.
Although not as dramatic as Dec this expiry also has a lot less ratio below the zone, and in fact overall it has a lot less ratio.
So, the downside risk remains but the big difference this trip is that immediately above the zone there is 400-points of Y1 ratio bandwidth, so it has plenty of room to play in.
However, it does skip Y2 and then the R ratios appear and climb quite quickly, so again it will be just a question of aggressiveness coupled with when it becomes so in this holiday infused expiry.
Range: 13050 to 13450
Type: On balance just fractionally bullish