FTSE and DAX Ratio Levels 7th September 2017
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Wow, what a good fight the FTSE put up, even we were impressed.
According to our reckoning the market did open still inside its zone (of course ignoring the “official” 7372.92) but very quickly fell below 7350 and into the R1 ratio.
It did rally (twice) but failed to break back up through it, then once again before the Street opened but finally succeeded only when the US was looking very firm and London had less than an hour to go.
Even then it only just managed to hold onto it so we suspect the fights not quite over and possibly not helped by weakening ratios below the zone, this shows up with the appearance of R2, which will make the “real” open crucial.
Range: 7250 to 7350 or 7350 to 7450
Activity: Very poor
Type: Not bearish
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However the praise must go to the DAX as it has achieved what it set out to do over a week ago, and in some style, so Bravo.
The open was always going to be weak and it did not disappoint falling 52 points to 12071 and then went on to 12066 and back to Y2, a level we saw was very effective on Monday with the low of 12050.
With a fair wind in their sails (basically the US) they didn’t make the same mistake from Tuesday and this time took it all the way to the NZ’s upper boundary, the high being 12260, which left them to finish in the middle of their zone and job done.
Today 11950 has been restored to R2 so it will really be a case of whether or not the target was always just getting back to their zone or do they have loftier ambitions?
Range: 12150 to 12250
Activity: Very poor
Type: Bearish
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