Sincerely well done to the FTSE as it managed to close outside its zone for only the second time this expiry.
The previous extremis was on the 25th Oct when it closed at 7447.21, so literally by just 2-points.
However, yesterday was very well fought as it hit 7552.75 shortly after the rate announcement and then collapsed at least 50-points.
So, to claw itself back to the upper boundary and manage to still close above, albeit by just 5-points, was obviously hard won.
This will make the open crucial and then how it copes with being in R1 ratio having spent so long in zero ratio and all the while DR towers over it.
Range: 7450 to 7550 or 7550 to 7650
We mentioned yesterday about how the DAX might react and if it would find being in R2 uncomfortable, and it looks like it did.
The open was 13448 and with a multiplier of 50 that would put our range at 13400 to 13450 and the low was indeed 13405 and the high 13460.
However as what little ratio there was has collapsed, witness R2 dropping a massive 200-points, but possibly more concerning (?) is what R2 there is left is now only just above the threshold, so at this rate of decline it is almost as if it’s actually not there.
Clear skies indeed.
Range: 13350 to 13600
Activity: Very good