We said yesterday the weird FTSE open would be critical and as it happened it wasted no time powering straight up and back into its NZ.
However this is where the good news ends, well apart from the fact it has 100 points of no ratio now above it if it stays there.
And this is a very big if as 7350-7450 in now looking certain to replace the current level, and is very probably the reason this market gave up the high of 7487.05 to finish struggling for all its worth holding on to 7450 (dare we mention the auction?).
Therefore at the end of the day there is a 100 points of zero ratio above or below the market which flips on 7450.
Range: 7250 / (7350) to 7450 or 7450 to 7550
We are certainly not convinced by the DAX although as we said it needed a friend and on seeing London start so well it was certainly very happy to join in.
Herein lays the issue for us as we are now nearly a quarter of the way through this expiry and it has hardly made any inroads into developing its ratios.
In fact R1 that saved this market on Monday (low 12142) has fallen from 12150 and at this stage that can never be bullish, even more so when it only goes as high as R2 below the zone as well.
Basically it really desperately needs a friend and London is pivotal around 7450 and the DJX has R1 to contend with so the jury is out presently.
Range: 12100 to 12450