Well the market in the FTSE is certainly trying to force the pace as right on cue, to the day, it moves ahead and gets its nose in front of 7450.
It is worth pointing out that in real time this index closed at 7445.62, so it was the auction that succeeded where during the day it couldn’t.
The trouble is we are not seeing it, the move in the NZ that is, and in fact it is 7150-7250 that is having another go rather than anything above the zone.
There is a day to go but we can’t help feeling that they needed to do more yesterday.
Range: 7400 to 7550
Type: On balance not bearish
The auction yesterday also took the market above Jan’s zone which is also an issue.
However, this index shouldn’t really come into play until after the rollover, so from Wednesday onwards, and as it stands it is still dwarfed by Dec so it is difficult to see how much influence it may actually have.
But if Dec wanted to get their zone higher then we would expect to see some sort of confirmation here if only by ratio movement and if anything we are seeing the opposite as the ratios are firmer above the zone.
Range: 7350 to 7450 or 7450 to 7500
Type: On balance only just bearish
Activity remains very decent in the DAX but we suspect the rollover is in charge now.
It started very well opening up almost 30-points and got as high as 13192 but the market was evidently very aware of what happened of Friday when it hit R1 at 13250 and shied away.
There are a lot of changes today, firmness below the zone resulting in R1 replacing Y2, and weakness above it.
Basically, all the ratios have slipped a bit, mainly pushed out by the introduction of Y1, which does give the market a bit more leeway as even if the zone doesn’t move being in Y1 on the rollover is not that bad.
Range: 13050 to 13250
In respect of Jan with 400-points of Y1 ratio above the zone it could happily accommodate any move in the Dec zone.
Otherwise it is symptomatic of Jan that despite such a large number of low ratios we haven’t got one single change today.
Range: 13050 to 13450