Again, the FTSE stayed in the R2 ratio bandwidth but again found it very heavy going.
However, the rollover will be focusing minds, being tomorrow, and we have today seen the Y1 ratio bandwidth increase and now goes all the way up to 7700.
We mentioned yesterday that 7750 was right on the threshold, and it still is, so we would also expect the R1 bandwidth to be 7700 to 7800 by the end of today.
Nevertheless, the main aspect has to be whether or not the NZ will make the move to 7600-7700.
Range: 7750 to 7850
Type: On balance only just not bullish
No change in any of Feb’s ratios, although they are actually weaker around the market but stronger further out either side.
The real issue is activity and what we are seeing is ok for this stage, but from here on in we should start to see it get a bit more exciting.
Of course, the main aspect is R3 at 7800 and DR just above that and how these two develop over the next few days will be crucial.
Range: 7750 to 7800
Type: On balance bullish
The DAX managed to finish dead centre of its zone so the rollover did manage to trump the NZ bandwidth test.
Actually, it came very close to executing another one yesterday as the high was right on the upper boundary at 13250, so we were getting rather nervous when the low of 13173 was reached.
However, we don’t think that is close enough to the bottom boundary, especially as it was so drifty the market, but two bandwidth tests in a row we suspect not even the rollover could trump that.
Range: 13150 to 13250
Type: On balance only just bearish
The ratios below the zone have fallen which has had the effect of introducing new levels so that there is now a more complete range.
Still makes it an odd start as below we go all the way up to DR, whereas above it only just makes it into R1.
And as these levels are exponential that is a very big differential.
Range: 13150 to 13550
Activity: Very good