The FTSE did try to get back into its NZ managing to get as high as 7453.74, but ultimately failing.
Interestingly the high on Monday was 7453.22 but of course then it was already inside its zone so it doesn’t count as a strike.
This means today’s open is going to be critical, but being London (with their unique open) this actually means the first half hour.
If they get back in the zone then there is 100 points of no ratio above them, but if they fail then they are still sitting on top of a 200 point Y ratio bandwidth, hence 7450 being critical.
Range: 7250 to 7450 or 7450 to 7550
Type: On balance definitely bullish
At least the DAX hasn’t been back down to revisit R1 at 12150 but otherwise the news is not that good.
Firstly the high yesterday was 12301 and at that time Y2 was at 12300 so it couldn’t break out and back into the Y1 ratio.
There is a glimmer of hope as the ratios below the zone have all fallen and so today Y2 starts at 12250 so by default this index is back in the Y1 ratio bandwidth, which makes the open today critical here as well.
However the ratios are all firmer above the zone so together that is a bearish sign, but as we said yesterday we suspect the fate of this market now rests with what the others are going to do.
Range: 12150 to 12450
Type: On balance decidedly bullish