The FTSE went down 0.03 point yesterday, apparently, so we can only speculate they are messing with the algo’s again.
More importantly it took full advantage of the freedom of its NZ, and quite rightly, but as we said R2 and the upper boundary of their NZ is going to be a tough hurdle.
However until that cold slap of reality hits they are certainly having fun as at the other end the closing auction (up about 8 points) took it to their high of the day as well.
Excluding this bizarre -0.03 we get one of those unique to London days where just 2 prices cover 4 levels being the open, high, low and close, so rock ‘n roll FTSE.
Range: 7350 to 7450
Type: On balance only just bearish
The DAX has let the side down as although their closing auction added points (about 6) but it only took the market back to its real time high and not a new one like the rest of Europe.
However for this index Monday was all about R1 which was at 12850 and their open (up 38 points) leapfrogged this at 12866, and then shortly after they hit their real time high and then slowly sank back to R1 with the low of 12849.
As you can see it has moved today, as has R2, but it is now just a question of whether or not it is comfortable taking on the R ratios and on yesterday’s evidence no it is not but currently it also doesn’t want to take a backward step, which is probably just as well as it is on a cliff-edge.
Range: 12550 to 12900 or 12900 to 13050
Type: On balance bearish