FTSE poised and is the QE bubble finally over in the DAX, today’s ratio table, levels and comment.

FTSE & DAX Ratio Table 31st December 2018

There were two massive milestones for the FTSE last week.

Firstly, bouncing off R3 which was then at 6550, with the intraday low of 6536.53, which was at the end of 150-point fall, eventually ending down just 100-points.

Secondly, was the close on Friday, being above 6700, which is back into the Y ratios.

Since our last ratio table there have been two important developments as well.

Firstly, the drop in the ratios below the zone.

Secondly, the zone itself being 150-points wide.

Obviously, there is still considerable risk, but now we are into a new expiry, and if it can get back above 6750, then it could become a very rapid ascent up through the zero-ratio zone to 6900.

Range:            6700  to 6750        or        6750  to  6900 

Activity:          Average

Type:              Neutral

For the DAX it was the level of activity that caught our eye, especially as they were closed for three days last week.

However, the end result is the ratios below the unchanged zone weakening considerably.

But, the surprising aspect, especially considering the one-sided nature of said activity, is the fact there has been precious little movement above the zone.

Most important, perhaps, is this index scraping a close just above R2.

This makes 10600 very significant, so watch any opening gaps, as 10550 is just as significant, and therefore we suspect their next trading day may be a deciding day for this index for the Jan expiry.

What we found fascinating is exactly where the DAX is now is exactly where is was when the ECB announced its QE and literally inflated this index all the way up to 13500.

So, next week, for us at least, may well reveal whether or not this index has at last returned to normal.

And we say this in full knowledge, and to repeat yet again, that because they don’t know what they did, as they don’t see it, how on earth can they regulate it let alone be in charge when they are the cause?

Range:            10250  to  10550        or        10550  to  (10600) / 10950

Activity:          Very good

Type:              Bullish

December 31st, 2018 by