As we have said many times we do not believe in coincidence where markets are concerned and here we are with the FTSE closing right on our level 7350.
From what we said on Friday “with this change it now places far greater emphasis on 7350” so it is worth noting that the real time close was 7343.43 after the intraday high of 7359.48, and it was the auction that took it to the bottom boundary.
We used to call this the quarterback sneak and historically it has been effective, especially so in London that has their own peculiar market opening methodology, as now above them there is 100 points of clear sky.
Range: 7250 to 7350 or 7350 to 7450
On Friday the DAX didn’t challenge Y2 again and in fact the closing auction here added 11.31 points to the index and not only turned a negative day into a positive one but also supplied the high of the day.
Nevertheless activity is still present and unashamedly bullish so it has had an effect on the ratios below the zone, the most obvious being the removal of R1.
And it was R1 first at 12400 (low 12390) on Monday and then again on the Thursday when it was at 12300 (low 12316) that has provided very decent support for this index so now 12250 becomes a very significant level.
Range: 12250 to 12550