FTSE and DAX today’s ratio levels and comment

It seems the FTSE is very content inside its zone, so much so it only managed a 27-point daily range.

More importantly that didn’t include another test of the upper boundary which leans towards the suspicion it has no aspirations in that direction presently.

However, as it also didn’t break the mid-point of its zone it evidently has no great desire to go in the other direction either.

Activity has returned to the more usual even though this is just day 3 of this expiry but it does look like it is adopting bit of a wait and see policy.

Range:            7450  to  7550

Activity:          Moderate

Type:              On balance bearish

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In direct contrast the DAX looks very discontented inside its zone and although their daily range was also a lot narrower, being just 72-points it did have some meaning.

With the high of 13055 it was another test of its upper boundary, and quite a spectacular one being at the end of a very long wick.

However, yesterday the low was some way from the bottom boundary which gives a clear indication of this index’s aspirations.

So that is two tests in a row of its upper boundary, three if you include Friday’s, so if it goes there again today it should succeed, and in reality, it is only Y1 as well on the other side.

Range:            12950  to  13050

Activity:          Good

Type:              On balance bearish

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