FTSE and DAX today’s ratio levels and comment

On Friday in the FTSE it was the exact replica of last Wednesday the day after they sneaked above 7450 right at the close aided and abetted by the auction.

However, this time it was above 7500 (Thursday) and yet again it resulted in a 20-point range, so if it follows the pattern the aggression should return today.

Although the ratios have changed, more specifically 7500 is now R2, so without moving anywhere this market now finds itself in a 100-point R2 ratio bandwidth.

Therefore, if they do try it they will find nothing in their path until R3 which no doubt will come (again) as an unpleasant surprise.

Worth pointing out that there is also nothing in their path down to 7450.

Range:            7450  to  7550

Activity:          Moderate

Type:              On balance bearish

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The DAX returned to a positive open but thereafter didn’t really capitalise on being back in the Y ratios.

Admittedly it was better than on Thursday but not by very much and considering the potential it was downright disappointing.

R1 remains the same but R2 slips out to 13200 with very little movement below the zone.

The story here is why hasn’t the NZ moved up and as it is in a 500-point Y ratio bandwidth how is not whiplashing around in triple digits.

Range:            12550  to  13050

Activity:          Good

Type:              On balance bearish

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