Yesterday we said the FTSE “seemed happy to be in neutral” by which we meant the NZ, or Neutral Zone or just plain zone, and it evidently was.
It did manage a decent rise but that is easy where there are no ratios at all to get in the way, but the fact it avoided testing the upper boundary, only getting as high as 7437.87, to us shows it is happy to go up but it isn’t going to pay or fight for the privilege.
Finishing close to the middle of its zone just confirms our view but this was courtesy of losing a rather impressive 13.34 points in the auction, so perhaps people are warming up.
Range: 7350 to 7450
Type: On balance not bearish
The DAX is acting like a caged animal, and great to see it being so aggressive and at least trying to break out.
And breakout is the operative word as this is now a double NZ bandwidth test or a test of both boundaries in the same day on two consecutive days. Great trading if you are alert to it.
The high was 12254 and you don’t get much closer than that on a twelve thousand point index, with the low coming in at 12169.
The fact it has so much Y1 ratio just above the zone makes us wonder if they knew they might just give it that extra push.
Anyway not only a bandwidth test *2 but this would also be strike 3 either end so hang on tight.
Range: 12150 to 12250