FTSE and DAX today’s Rollover ratio levels and comment

Today’s rollover tables will be posted here;

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That was a very nice sting in the tail for the FTSE getting all aggressive from the open and rampaging down to test the bottom boundary at 7350.

The low was 7336.23 which was part of an inverted pyramid over about 15 minutes so for the bulk of that time the market was in fact a lot closer to the bottom boundary.

Obviously it held but it must have made quite a few rather nervous.

Out of all the FTSE was the only one to spend the rollover inside its zone, so it finishes top of the class and can now go out to play.

Range:            7350  to  7450

Activity:          Poor

Type:               On balance just not bearish

Today and tomorrow will see if the FTSE needs to break its recent zone shackles and although this expiry now has an influence we call it the grey area as it always seems neither but both are in charge and in the ensuing confusion anything can happen.

Sometimes it can provide great opportunity for when reality comes crashing back in at the start of this expiry on Monday.

The ratios are firmer across the board but there are no changes.

Range:          7350  to  7450

Activity:        Average

Type:             Neutral

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For the second day running the DAX was entrenched at 12550 which stood at R1 yesterday down from R2.

Persistent and aggressive, two words we seldom use with this index, and at any other time very bullish as it is willing to go toe to toe with the futures selling, but not quite gung ho enough to push through.

Very impressive apart from the small detail of the rollover and expiry, and as we say we are not used to this index at this stage being so forthright, but hat’s off to them.

The NZ hasn’t changed but as you can see from the table the ratios above the zone are in freefall so the desire is blatantly obvious, the only doubt is whether they can ignore the expiry as well?

Range:            12250  to  12650

Activity:          Average

Type:               Bearish

Oct being a work in progress theoretically should be the first and easiest to reflect any changes and so it is noteworthy that it too hasn’t moved.

However we mentioned yesterday that 12350-12450 is making a move to be it and that is also the case today and we would be surprised if it wasn’t by tomorrow.

The problem with it taking so long is rather than building the ratios you get the scenario where they weaken to accommodate the move, thereby stunting the normal development, so really the sooner the better.

Range:           12250  to  12850

Activity:         Average

Type:              On balance decidedly bullish

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