FTSE & DAX Ratio Table 2nd July 2018
Deja-vu in the FTSE as this is the second time this expiry that the bulls, who are still trying very hard obviously, have failed to hold on to it being in the zone.
Last time it was the last hour of trading, this time it took a massive drop of 24.84-points courtesy of the auction to do it, which is simply not good.
Obviously, the auction is not a level playing field, and definitely opaque, but in real time it was very informative to see the market drop all the way back down to the zones bottom boundary, with the intraday low of 7650.80 before recovering well, which is a far more natural reaction.
No idea, interest or motivation as to what shenanigans caused such a massive drop, but at least they didn’t have any more PME’s as they did two days running earlier in the week, but it will make for an interesting start today and 7650 remains a key level.
Range: 7550 to 7650 or 7650 to 7750
The DAX remains just as friendless as it has been all expiry so far.
Perhaps the situation has actually deteriorated.
When we last looked at this index R2 was loitering around 12200 so it was interesting to see the closing low was 12177 last week.
However, as you can see from the above table R2 below the zone has gone, and this itself has dropped a further 200-points, so all in all it is in a rather bad way.
Rising ratios above the zone, falling ones below it, on top of a zone which itself is falling means three bearish indicators.
The only saving grace is that there is little corresponding ratio above the zone, so if it does find a friend there is little resistance, but as things stand there is also no ratio support at all.
The only other positive note is that activity is not only high but unambiguously bullish.
Range: 11950 to 12450