FTSE & DAX Ratio Table 27th Sept 2018
After all the excitement in the FTSE in September we are seeing a very calm and collected start to the October expiry.
And having spent almost the entire previous expiry below its zone it is nice to see it having a degree of resilience this time round.
The intraday low on Monday was 7450.53 and on Tuesday 7455.22, so two very solid tests of the bottom boundary of the zone, which hasn’t changed since the rollover.
Of course, we would like to see a test of the upper boundary, but don’t forget the bottom one is now on strike 3.
Also, this expiry we have returned to a more normal ratio alignment, and we have seen good increases in them, both above and below the zone.
As things stand we would expect the zone to hold the market, and to see a test of 7550 before it decides if, or which way, it wants to break out of it.
And if, or when it does, there is still some Y ratio either side, so 7350 to 7600 is still a very plausible trading range for the rest of this expiry.
Range: 7450 to 7550
Type: On balance fractionally bullish
The DAX is in a remarkably similar situation to the FTSE as it has also spent the first three days of this expiry in its zone.
However, here this index is not showing quite the same resilience as rather than just two tests of the bottom boundary of their zone here it has been three days in a row.
The intraday lows were 12349, 12322 and 12329 on Monday, Tuesday and Wednesday respectively, and although it managed to recover and stay inside on each day it must be getting weaker and weaker all the time.
If, or when, it does break free of its zone then there is still quite a lot of Y ratio, either side, but as things stand it looks like the only support it has is the bottom boundary, and that must be wafer thin by now.
Range: 12350 to 12450