Both FTSE and DAX bounce off their B ratio and both zones now significant, today’s ratio table, levels and comment.

FTSE & DAX Ratio Table 22nd November 2018



Well we sincerely hope you were not caught out by the bounce in the FTSE, which was always on the cards after it had tangled with B1 at 6950 yesterday, and was in our rollover table 8 trading days ago.

On which subject, the intraday low of 6904.21 on Tuesday does not do justice to B1, which held the line until the Street opened down 400-points causing the spike down.

As you can see 6950 is now DR, which also hides the threat that 6950-7050 may become the next zone.

This highlights one of the problems with such a massive expiry, as the shoulders either side of the existing zone are so large, they can mask any potential move, and if it does happen this also means it can be rather dramatic.

To us this is also why this index finished at 7050.23, which would be the new zones upper boundary of course.

What happens next is really all down to whether or not the zone changes, as this will change the entire dynamic.

So much so, without even hardly moving, the FTSE could find itself back in bullish territory for example.

At least B1 has established the level of sensitivity, and which is quite normal for the mighty Dec, so for this expiry 6950 (already seen) to 7550 is possible.


Range:            6950  to  7150 

Activity:          Poor

Type:              On balance only just fractionally bearish



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The waters are a bit muddier where the DAX is concerned, as back on the 13th in our rollover table B1 was standing at 11150.

11150 was an important level on Tuesday, but as you can see above B1 is now 10950, so at a guess it was probably 11050 on the 20th.

Anyway, it must have been there or thereabouts as the intraday low was 11009 and the close 11066.

The big question here is also the zone, but here it is trapped a lot higher up.

However, the appearance of 500-points of Y ratio means it will move, and one has to assume to 11450-11550.

Irrespective of this it is very significant that the ratios only go as high as R2 above the zone, so no corresponding B ratio, which makes this index exactly the same as in our rollover table, terribly lopsided.

So, the only question is whether this bounce off B1 is going to provide enough momentum, so it might be prudent to also bear in mind where the US indices are in relation to their ratio levels as that market probably presents the greatest risk to this market.


Range:            10950  to 11250        or        11250  to  11950

Activity:          Moderate

Type:              On balance bullish



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November 22nd, 2018 by