FTSE just held onto its zone and DAX in bear territory 1st time, today’s levels.

FTSE and DAX Ratio Table 4th Dec 2017

Again, the FTSE seemed more than happy to be in its NZ, but it certainly had to work for it on Friday.

The low was 7288.73 but it did manage to recover their zone in real time, closing at 7301.23, it was the auction that took it to the wire, which was in fact a victory as at one stage during it looked like establishing a new low.

Although it is not strictly a NZ bandwidth test, as it took place over two days, but the high on Thursday was 7416.26, and we have to grant a bit of leeway as 100-points is a lot, especially in just one day, so be wary of a potential breakout today.

Range:            7150  to  7300       or        7300  to  7400 

Activity:          Poor

Type:              Not bearish

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As we said on Friday “this has happened twice before recently (and it’s a really neat trick considering), on the 27^th/30^th Oct (13226) and the 7^th/8^th Oct (13393) and on both occasions the following day this index had huge moves, respectively 235.95 and 199.86”, and to which we can now add 29^th/30^th Nov with a subsequent move of 162.49.

Nevertheless, this has certainly broken the recent pattern and what’s more this puts the DAX into bear territory for the first time this expiry.

In fact, we have to go back to the start of the Nov expiry when this index last tested the bottom boundary (lows of 12931 & 12940) but it never closed below, that is until the rollover and the Nigerian “coup”.

No changes in the ratios today but it is all about how it now reacts in this new situation, especially around Y2 if it tests it.

Range:            12450  to  12950

Activity:          Very poor

Type:              On balance bearish

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