FTSE still zone bound, DAX great recovery back to theirs and today’s levels.

The FTSE was rather aggressive first thing, and our old bugbear comes to the fore here as in the real world the open was nowhere near 7327.50.

In fact, the low of 7289.36 was nearer to the open, which was also a solid test of the bottom boundary of the zone it has been so cosy in.

So, no surprise to us that within minutes it was safely back inside and the fact the close was as near to dead centre as you could get is probably no coincidence.

No change to any of the ratios and activity was particularly low but as this will build as we head towards the rollover it will become harder and harder to keep this index calm.

Range:            7300  to  7400 

Activity:          Very poor

Type:              On balance not bearish

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Just to highlight how misleading London’s open was here in the DAX they opened down 151-points at 12897, significantly below their bottom boundary.

Interestingly they also recovered strongly which resulted in a strong test of the bottom boundary, but to break back in, which failed.

They then went on to make 3 more tests, all of which were far more timid than the first, before they did eventually break back up courtesy of the Street.

Again, you couldn’t get a finish closer to dead centre of their NZ if you tried which again is no coincidence to us.

Range:            12950  to  13050

Activity:          Moderate

Type:              Bearish

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