When it came to the crunch yesterday evidently there was not enough fight left at 7350 as the market powered down through it without blinking.
Presumably the hours spent camped on it on Monday drained the bulls desire to hold it even though it is straight into the R1 ratio.
However that was still a lot of effort to go to on Friday so we don’t think they have retreated very far, but probably need an ally to give them confidence.
The ratios are firmer across the board, more so above the zone, but the only change is DR below the zone comes in slightly.
Range: 7250 to 7350
Having struggled so hard and so unsuccessfully to get above Y2 when it was at 12450 for over a week it seems the DAX was not about to surrender what it had gained very easily.
The fact that the low was just 12417 and irrespective that the close was 12437, because Y2 is now at 12350, shows just how resilient this index was yesterday.
However we stress that the Y ratio bandwidth still stretches from 12250 all the way up to 13000, a massive 750 points, so all it needs is a little spark to start it going as it has huge potential still.
Range: 12250 to 12550