FTSE and DAX today’s ratio levels and comment

We still believe the FTSE is happier in neutral, but under such circumstances we can fully understand yesterday’s reaction.

However this is where the FTSE is unique as the open is the previous close, but where they got the market going up 0.16 point totally defeats us, but we are sure it messed with a lot of “algo’s”, so determining the real open is virtually impossible.

We believe, but cannot authenticate, it opened below the lower boundary, which of course somewhat dictates the rest of the day.

The fact it only went as low as 7289.20 means under any other situation we don’t believe this index would have gone below the bottom boundary or 7350, which makes its recapture rather crucial.

Range:            7250  to  7350      or       7350  to  7450

Activity:          Very poor

Type:              Bullish

No intrigue where the DAX is concerned as it opened down 92 points which was also its high of the day, so much more transparent.

On the way down in the morning the markets encounter with R2 at 11950 held it up for fifteen perhaps twenty minutes but once through it was struggling.

We don’t see the market closing on R2 as a coincidence and having traveled 255 points to get within 5 is close enough for us.

So the open is crucial again but with R ratios now all beneath and a lot of Y ratio above no surprise where we stand, and this is exactly what we hoped should have happened last week.

Range:            11750  to  11950      or       11950  to  12150

Activity:          Very poor

Type:              Neutral