As we said yesterday in the FTSE “it still needs to test 7350” and as you can see by the close it has certainly done that.
However there was a lot more to Thursday as right at the start the market spiked to 7451.95 for yet another test of the bottom boundary of its NZ, but more importantly, apart from our trading range, was that this makes it a bandwidth test so expect a breakout today.
Rather unfortunately for the FTSE it is bumping up against R1 so it is experiencing support whereas every other market is yet to find theirs, so it is the odd one out for sure and possibly not in a good way.
Range: 7300 to 7350 or 7350 to 7450
It started brightly for the DAX gaping up 60 points at the open and almost made it all the way back to test the lower boundary of its NZ again.
The fact it only got to 12729 was not good and with a weak Street and so much Y ratio around still, and the fact the market knew it now, a test of R1 was on the cards as it was in London.
The difference was the DAX had a lot further to go to get to their R ratio so hence it fell 1.83% whereas the FTSE only dropped 0.51%.
Big day, and open, today as it has overshot slightly but nevertheless this is the first test for the bears as they will now see some futures support.
Range: 12350 to 12450 or 12450 to 12750