FTSE & DAX Ratio Table 6th April 2018
And so, with one mighty bound the FTSE leapt over 7050, and we must say it was definitely coming.
London’s madness of calling the open the previous close, i.e. 7034.01, is blatantly stupid as in the real world a conservative guess was up at least 80-points.
The significance of this is that would have made the open 7114, which was also above the bottom boundary of the zone.
The big news today is the zone, which is unusual for the FTSE, is now 150-points, but also there is no more Y ratio.
Hopefully, it will consolidate in its zone, but don’t forget whilst on the bear tack it was all about DR, first at 6950 then 6900, so still loads of potential scope and time.
Range: 7100 to 7250
Activity: Very poor
For the record the DAX opened up 196-points.
More importantly you couldn’t get a more fortuitous switch in the zone as on that Wednesday it dipped down to 11792, near enough the middle of the new zone, before recovering, and then yesterday taking total advantage of all that minimal Y1 ratio.
The ratios continue to strengthen above the zone, but for once they have also below it, so much so we actually see R2 appear.
The thing about there being such a huge amount of Y ratio is you will get big moves, but if you know this then you will be one step ahead and not get too caught up with the hyperbole.
Range: 11850 to 12450
Type: On balance only just bullish