FTSE & DAX Ratio Table 22nd March 2018
Coincidentally when we last looked at the FTSE the close was at this very same level, well 4-points above it to be precise, but close enough.
However, you couldn’t get two different closes, which really only becomes apparent when one realises the significance of 7050.
Basically, Monday’s close was last minute whereas yesterdays was early on and very much by design, as Tuesday had revealed the bulls hand by their attempt to get above 7050, so the bears knew what had to be done and basically did it.
The fight back to get back to 7047 before the close also shows the bulls have not retreated very far.
7050 obviously remains critical, and 7100 remains R2 by the skin of its teeth, so if the bulls go for it then the zone would be the next target with every possibility of seeing a test of 7350, or R2, this expiry.
So, a lot to play for, and on the downside, DR is now just 80-points below, so best to be prepared.
Range: 6950 to 7050 or 7050 to 7100
Activity: Very good
Type: On balance bearish
The DAX in a word, sedate.
After Monday’s excitement, when it never even tested their Y2 level, unlike the DJX and SPX, it has recovered enough to knock on the bottom zone boundary door with the high of 12344.
It is the first week of a five-week expiry so this response is perfectly normal, but if it does get excitable then don’t forget it is still in a 300-point wide Y1 ratio bandwidth, and that’s just below the zone as well, so it could easily start motoring.
Range: 12050 to 12350