FTSE & DAX Ratio Table 22nd August 2018
It has been a while since we last looked at the FTSE, the 14th to be precise, and there have been surprisingly few changes.
Although, this is one of the benefits of a triple, because the numbers are just so much more then change can be infrequent.
The added bonus of this is that it makes it very easy to remember, or to jot down the levels.
The pertinent ones we mentioned last time haven’t changed, being 7350 below the zone and possibly 7750, otherwise 7850 above it.
The other aspect is the zone itself, not too mention the gravitational influence it exerts, which is what we suspect the last two days have been all about.
Therefore 7550 is the all-important level now, as below it there is zero ratio until 7450, but at the other end if it can cope with 7600 (last 2 intraday highs 7616.15 & 7601.65) then it would reveal it is comfortable taking on Y2, which would then leave the way open to 7750.
Both levels are now on strike 2 please note, after the last two intraday lows of 7558.59 & 7557.34.
Range: 7550 to (7600) / 7750
Type: On balance bearish
Our last comment on the DAX, August 16th, was all about how lopsided the ratios were and that the September expiry may well hold a surprise.
Well, in truth, the surprise was only for those who were unaware of how the ratios were aligned for this expiry.
Our minor disappointment was we never saw a test of 11950, which has today changed from DR to R3, as that would have been really spectacular.
However, it seems R2 at 12150 proved admirably up to the task, with the last three lows of last week coming in at 12120, 12168 and 12135 respectively.
Yesterday saw this index bump its head on their zones bottom boundary, the intraday high being 12432, which may well introduce a degree of realism, after bouncing off R1 on Monday, with the intraday low of 12245.
The other cause for concern is what is happening across in the US markets with the SPX hitting R1 and the DJX hitting their Y2.
All in all, it is proving to be an exciting start to this expiry, which bodes well for the next few weeks, assuming one likes a bit of volatility that is.
Range: 12250 to 12450