FTSE all about its zone, DAX not so resilient, today’s ratio table, levels and comment.

FTSE & DAX Ratio Table 3rd October 2018

Since our last comment in the FTSE on Thursday 27^th September you could be mistaken for thinking it has been quite boring, especially as it has only moved 37-points.

However, last Thursday and Friday saw two very good test of this index’s zones upper boundary at 7550, with intraday highs of 7552.02 and 7548.36 respectively.

Although Thursday’s was the best as it got knocked back twice before a sly attempt in the closing auction.

Then yesterday, Tuesday 2^nd October, the market nosedived down to the bottom boundary at 7450, recovered, then went back for a more concerted effort, which resulted in the intraday low of 7444.80.

That’s just over 100-points, so perhaps not so boring after all.

The ratios have changed but it’s still all about the zone, and when it does break there is still a decent amount of Y ratio either side, so there should still be some excellent trading yet to come.

Range:             7450  to  7550 

Activity:            Moderate

Type:                On balance not bullish

Essentially the DAX has carried on from what we highlighted last time, “here this index is not showing quite the same resilience”.

Although, in total, it has probably had as many tests of its upper and lower zone boundaries, the market movement overall has been much more extreme.

The first three days last week were all about the bottom boundary with intraday lows of 12349, 12322 and 12329, and then on the Thursday the upper boundary with the intraday high of 12456.

Since then it has been south of its zone, with Y2 at 12250 playing quite a big role, although it did try and break back up into it on Monday with the intraday high of 12373.

With such a wide Y ratio bandwidth this is hardly unexpected, but it is worth noting that both the R1 levels have come in quite a bit, so this bandwidth is definitely narrowing.

Range:            12150  to 12350

Activity:          Average

Type:              Neutral