In the FTSE’s ratio table above the move by R1 to 7700 doesn’t look that much, but it does reveal the continued weakness in the ratios above the zone.
Because this time last week R1 started at 7600, R2 at 7650 and R3 at 7750, so with the market closing at 7648.10 it was already knocking on the door of these higher ratios.
Fast forward to today and by recapturing 7700 the market stays in R1, but now there is 150-points of Y ratio underneath it.
Although the ratios are tumbling the market itself does not appear to have maintained its aggressiveness, so it is just as well the resistance is caving in before it, and hopefully we will see a move up in the NZ as thoughts will be turning towards the rollover next week very shortly.
Range: 7700 to 7750
Type: On balance just fractionally bearish
Huge changes in the DAX but first we must mention yesterday as it is relevant to today’s changes.
Y2 had moved to 13400 and 13450 had dropped to R1 with the market previously being sensitive to Y2 this was going to be interesting, and true enough with the high of 13425, splitting the two, was perhaps the obvious outcome.
Because of, or in spite of, it has stimulated some large activity which has changed the landscape almost entirely, especially above the zone, and very probably with the rollover just a week away the target.
We suspect the full intent will become all too apparent when, or if, the market hits R2.
Range: 13050 to 13450