Just as we said yesterday in the FTSE “or wallow like before and slip back to the upper boundary” which is exactly what it did spending almost the entire day just above 7400.
The weakness coming through from the US saw it grab the opportunity with both hands to get back inside its zone.
The ratios are weaker across the board but very interestingly there was an abnormally large move in 7200 which can sometimes reflect a motive to becoming the next NZ, which would be a game-changer indeed, so watch this space.
In the meantime, we still believe this index would be happiest inside its NZ, at least until rollover week.
Range: 7300 to 7400 or 7400 to 7550
Type: On balance not bullish
The DAX is bit of a conundrum at the moment as on Tuesday it started wild then quickly went compliant whereas yesterday it started like a steam train but capitulated all to easily.
And then, once it had got back inside its NZ, it decided to fight to stay above it in the auction.
It just needs consistency, but so far this expiry it has had 3 closes inside their zone and 5 outside, but only by an average of 10.8-points, so hardly aggressive if they count at all.
Range: 12950 to 13050 or 13050 to 13250
Activity: Very poor