It is turning into quite a tussle in the FTSE as we thought they had managed to set it up for Wednesday with such a strong opening.
Again, the open being the previous close is misleading as from our viewpoint the market opened easily above 7450 and hence back in its zone.
And despite getting as high as 7469.30 it was proving to be a struggle, which means the market could be in for an even bigger fight today, as the clock counts down.
No meaningful changes in the ratios and activity was low which will not help.
Range: 7350 to 7450
The real problem for the FTSE is that Dec NZ hasn’t moved and the longer the zone stays down here it will affect November.
In fact, none of the ratios have moved so if it comes to a battle of wills between an intermediary expiry and a triple then the triple normally wins, but when that triple is the mighty Dec then it’s not really a contest.
So as things stand the market is caught between the proverbial rock and a hard place, which explains the two opposing forces we saw at work yesterday at least.
Range: 7400 to 7550
It probably didn’t help the DAX when it opened up 23-points as that was at 13150 which was right on the upper boundary.
The fact it dropped 167-points, or just over 200-points from the high, shows the benefit/problem of so little ratio.
However, it is very good news that it recovered to finish the day still inside its zone and that was despite the auction costing it 15.16-points.
No change in the NZ or the ratios and just a day to go which is always the hardest part as in so near and yet still so far.
Range: 13050 to 13150
December is cutting it fine if it wants its NZ to start moving, and we feel that it will but it does need to just get on with it.
The issue may well be that it will more than likely move to somewhere in the Y1 ratio bandwidth, however Y2 starts at 13050 so the chances are that when it does move up it will still be below the current market.
However, the real issue is the lack of any ratio below the current zone as this is similar to walking along the edge of a precipice.
Range: 12650 to 13250