It was certainly a better effort in the FTSE as it took on R1 again and if one knew what they were battling at 7550 then the effort was all too apparent.
For most of the morning they held the market 5-points above R1 apart from the spike that resulted in the high of 7563.49, and then again in the afternoon they twice rallied back up to R1, and held for there for several bars, but in the end just couldn’t manage it.
The main change is the loss of Y2 above the zone which leaves this market in a 100-point wide Y1 ratio bandwidth so they need to grow a pair or it will most probably be straight back to the NZ.
Range: 7450 to 7550 or 7550 to 7600
It seems like the DAX may be a bit more sensitive than perhaps we first thought.
Basically, after Monday’s explosion out of the gates we thought yesterday that it would breeze past the newly formed Y2 at 13350 but as the high of 13338 testifies it obviously couldn’t.
The fact it has slipped today to 13400 is also indicative of just how close to the threshold it was, which also indicates a higher degree of sensitivity.
Nevertheless, it still has a huge amount of Y1 ratio to play around in so we are sure it won’t be boring.
Range: 13050 to 13400 / 13450
Activity: Very good