FTSE should be in its zone, DAX is back in theirs today’s levels, table and comment.

FTSE & DAX Ratio Table 26th Feb 2018

We last looked at the FTSE on Wed 21^st and then it was all about R3 at 7200 and the bottom of the zone at 7250.

On that day it closed back inside its zone at 7281.57 but a nigh on 500-point wobble on the DJX knocked it straight back to R3.

The first test was early morning of course but it recovered well before testing it again fearing another weak Street, and on both occasions getting as low as 7190.

Friday it never went back to R3 at 7200, which is significant, but also didn’t quite manage to hold onto the zone at 7250, ending up closing just below it.

Today below the zone it is very straightforward now, but early on the market won’t know R3 has gone so it may still be effective, otherwise it’s obvious to us it really wants to get back in its zone, so the only question is whether the others will let it?

Range:            7150  to  7250        or        7250  to  7350 

Activity:          Poor

Type:              On balance only just bearish

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Similarly, our last look at the DAX had it in its zone, in fact the close last Tuesday to this Friday’s close is a change of only – 4-points (nb. The FTSE is – 2.36-points).

 However, the story here is the tests of R1 at 12350 it has had, but probably more importantly, survived from.

Again, this index to us looks happy to be in its zone, but nevertheless can’t help having nervous glances over its shoulder to see what the US is doing.

The big change here is the strength in the ratios above the zone, still very lopsided but at least not by quite as much now.

Range:            12450  to  12550

Activity:          Moderate

Type:              On balance bullish

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