FTSE and DAX Ratio table Jan 2018
The FTSE was certainly the poor cousin in Europe and was evidently struggling in R2.
We did say “(R2) the surprise is that it is still at 7700 and not 7750” and we have seen this move today, but by failing to move for yesterday means today’s reaction is all the more severe for it.
So today 7600 has slipped back into the Y ratios making the R1 ratio bandwidth just 100-points, but making 7650 a crucial level now.
Range: 7650 to 7750
Activity: Very good
Type: On balance only just bearish
Being in Y2 has certainly stimulated the DAX, which must have been bit of a nasty surprise.
On Friday Y2 then at 13350 stopped the markets 165-point advance at 13332, so yesterday with Y2 moving to 13250 that put it below the market which had closed at 13319.
So today in reaction to what was obviously an uncomfortable circumstance Y2 drops back to 13400, putting it back above the market, but 13450 drops to R1 leaving R2 at 13550.
This means some tough, but not quite as tough as they once were, ratio levels now directly in the markets path.
On a positive note all this has now left 13150-13250 as a potential new NZ.
Range: 13050 to 13400