The FTSE is very unconvincing at the moment and Friday just exemplified this.
It actually opened a bit better then began to drift before testing the upper boundary again for about half an hour, then dipped below and drifted to the low of 7389.54 which then managed to create a reaction and it quickly recovered to above the zone.
The thing is that it then tested 7400 twice more during the rest of the day and the close leaves it back within spitting distance.
We are beginning to suspect the NZ needs to move first to force the market as it doesn’t seem capable of achieving it on its own, and furthermore the next test of the upper boundary would be strike 3.
Range: 7300 to 7400 or 7400 to 7550
Activity: Very poor
Considering we were expecting a breakout in the DAX after Thursday NZ bandwidth test then this was also rather unconvincing.
It opened below the upper boundary, crept up to it, stalled for about 45 minutes, then managed to break through, albeit rather explosively, around half past 11.
Admittedly it got as high as 13160 before coming all the way back, but significantly managing a close above the zone in a position very similar to London.
The ratios are firmer across the board with the Y ratios below the zone at last beginning to fill in.
Range: 12950 to 13050 or 13050 to 13250
Type: On balance just fractionally bearish