FTSE & DAX Ratio Table 10th December 2018
Hopefully you have been listening as in the FTSE the very day of our last comment, 3rd Dec, we got the breakout from the 6950-7050 two-week trading range as expected.
The perfect irony was the intraday high last Monday was 7145.45 which was a test of the stubborn old zones bottom boundary, 7150.
This was exactly the push that this index needed as the zone has now moved to where it should have been all along, 6950-7050, surprise surprise.
Of course, this index was already well acquainted with 6950, but it was still humbling to see it in action on the Wednesday when this index was reacting to the first of Wall Street’s big falls.
In fact, that day saw the first test of B1 which was lurking at 6900 and is now at 6850.
In all honesty, if you knew where the ratio levels were in the FTSE then last week made perfect sense, as the intraday low on Thursday of 6673.57 does not do justice to how well B2 held the line at 6700.
The fact that the intraday low on Friday was 6704.05 is no coincidence.
Today it is still the same but please be aware that it is clinging on by its fingernails, being just above the threshold, not to mention another test would be strike 3, but 6650 is a very solid B2.
And grab those handrails as we still have two more weeks of this fantastic biggest of the big triple witches, which has lived up to its reputation admirably.
Range: (6650) / 6700 to 6850
If London was a perfect example of an index reacting with its ratio levels then the DAX wasn’t very far behind.
In our last comment we mentioned “this, now makes 11350 as a very significant level” because “if it can get over this then it is into the minimal Y ratios, which stretch all the way up to 11850, so buckle up”.
So, if you had been paying attention, then that Monday it gapped up at the open by a massive 278-points, but more importantly to 11534.
Again, if you had been paying attention, the intraday high and low of 11566 and 11457 respectively made that a zone bandwidth test (= breakout).
A zone that has remained static incidentally.
The next two days saw intraday lows of 11335 (confirming breakout) and 11177 which were, and still are, ratio levels of R2 at 11350 and R3 at 11150.
DR was at 11050 and Thursday’s open was 11053, which was essentially the high as well as the outlook was so bleak.
So, that really left B1 as the next line of defence, and as one can see today it is 10750, and on last Monday it was 10900, so at some stage it shifted, and as the intraday low on Thursday was 10762, we can only suspect that it was on the move, or had moved, by then.
Same as London though, as B1 is so courtesy of its fingernails, but here the more solid B1 is at 10650.
This does bring back memories though, as the DAX used to routinely trade between its B1 levels, although back then there was never such a huge gap from one to the other, which is really what is affecting the US at the moment and giving rise to such fantastic trading markets.
Range: (10650) / 10750 to 10950