FTSE and DAX Ratio Table 4th June 2018
The FTSE from a ratio viewpoint couldn’t be simpler, it hit B2 (high 7903.50) on the second day of this expiry having closed above 7850 on the first day.
Since then it spent the first three days of the second week around the DR level, which was then at 7650, and which marked the bottom of our trading range.
As one can see that has now gone so there is just one enormous R3 ratio bandwidth that stretches from 7450 all the way up to 7850 that it is now in.
But, as we said last time, “there are some huge positions which will dictate this expiry for sure”, and that hasn’t changed so just don’t expect normal.
Range: 7450 to 7850
Germany and the DAX is almost the mirror of London, with all the changes in the ratios here taking place below the zone.
Also, whereas for London it’s all about being above the zone, for the market here it is all about being below the zone.
Furthermore, the DR ratio bandwidth that this market is currently in stretches for a mammoth 700-points, from 12250 all the way up to 12950.
Again, there are some huge positions, but it is harder to tell if this is over and above what would be normal, or expected, for the second biggie of the year.
Range: 12250 to 12950
Type: On balance bearish