FTSE & DAX Ratio Table 27th June 2018
As we said last time “Poor old London and the FTSE as it seems others did indeed have this index’s fate in their hands, although they had their chances, but just failed to take them”.
They tried ever so hard on Friday to get this index back inside its zone, in fact it was camped out for well over an hour on 7650 before they managed it.
Of course, the rout on Monday didn’t help, and don’t forget 7550 was on strike two as well, so no surprise then when that gave way.
However, the FTSE’s travails didn’t end there as yesterday they tried desperately to get back above 7550 and got scuppered by the auction, again.
Today, 7500 getting promoted to R3 has probably muddied the waters.
Suffice it to say that it has only just made the grade, whereas the old level at 7450 is by far a much more robust and therefore significant R3.
Range: 7450 / 7500 to 7550
Activity: Very poor
Basically, everything we said last time in the DAX, including the bit from the time before that, holds just as true now, so please find it below.
The only difference now is that yesterday the DAX hit a low of 12188, so with R2 at 12200 the ratios have, or are doing, all that they can.
“As we said “and, in a nutshell, that is going to be the problem here (very underdeveloped) for this expiry as the ratios, on either side, currently only go as high as R2, which is going to be asking an awful lot of a little if the markets test them”.
The DAX has just stormed down through all that Y1 ratio, and even Y2 yesterday hardly caused a second glance.
And just to compound matters the zone has dropped, and by a considerable amount.
The real test will be when, or if, it hits the R ratios and if they provide any support.
Worth knowing that if they do then the nearest corresponding R ratio at the other end is not until 13400, a very cool 900-points away, but it may need a friend, so watch out for London hitting R3 perhaps, or something Stateside”.
Range: 12200 to 12250
Type: On balance just bullish