We would like to revise yesterday’s comment in the FTSE “hardly aggressive but above is above regardless and no matter how they won the bulls deserve it, if only for persistence and perseverance” to no they don’t deserve it.
Basically to go to all that trouble to get above the upper boundary and then just languish in a 10 point range is just ridiculous.
Ok the range was 20 points with the low of 7456.61 but this was a test of the upper boundary that they did on about 5 occasions throughout the day in little spikes so we are referring to the bulk of the eight and a half hour trading day.
The ratios below the zone are firmer, with the loss of R1, while above slightly weaker with no changes.
Range: 7450 to 7500
For the DAX it really was an inverted pyramid day as they started off like a steam train which hit the buffers shortly after it opened up 53 points at 12955.
It fell all the way back to R1, which yesterday was at 12900, with a low of 12893 before spending the rest of the day recovering to its morning high.
As you can see the market closed above the new R1 level reinforcing its position within the R1 ratio bandwidth and meaning this index is indeed comfortable with this level of ratio it seems.
R2 is but an open and a bit away and that is the last hurdle facing this market, or at least domestic, as if it copes with this then the only potential blot on its horizon would be from the States as it is plainly happy to ignore London.
Range: 12550 to 12950 or 12950 to 13050