FTSE & DAX Ratio Table 31st October 2018
There are a lot of undercurrents in the FTSE at the moment, and it is worth bearing in mind that as we do not calculate the ratios now every day it is sometimes very difficult to see where the rate of change is, and hence forthcoming moves.
Of course, we are referring to the zone now being 6950-7050, which now makes perfect sense as we were wondering why 7050 was proving such a hurdle on Mon and Tues, but as it is now the zones upper boundary, bingo.
The fact the zone has moved again is really not good, but we suspect this is mainly due to the southerly momentum that had built up.
Nevertheless, as the ratios below the zone have also weakened, there is still a high degree of downside risk present.
However, on a more positive note, it is plainly evident that the market is trying to move ahead, hence the huge battle with 7050.
And if it does break through, then there is as much Y ratio still above the zone as there was below it at the start of this expiry, so it really could motor, and this is reflected in our trading range below.
Range: 6950 to 7050 or 7050 to 7250
Type: On balance bullish
Very scarily, we haven’t looked at the DAX since the 9th October, a full 16 trading days ago.
In which time there has been a rollover and expiry, so no chance whatsoever of any continuity
However, as all the other indices that we did cover had a huge amount of Y ratio below their respective zones at the start of this expiry, so there is absolutely no reason to suspect otherwise here.
In fact, the exact opposite would be more than likely, as this is always a slow starter and it was an intermediary to intermediary.
So, please find the ratios in the table above, but as for rate of change, or in which direction, this is impossible to discern at this stage.
Range: 11150 to 11450