FTSE & DAX Ratio Table 4th April 2018
What with the holiday it seems far longer in the FTSE than the 2 actual days since our last comment.
And more to the point all the changes in the ratios come above the zone.
So, as R2 at 7050 has been static, it gives a far clearer indication of just how important this level still is, as it formed a perfect head and shoulders pattern with 7050 being both shoulders, made all the more apparent as it was a sharp 40-point move up in both cases to establish them.
Basically, the FTSE has been knocking on this door for the last three days, so no doubt where it wants to go, so the only question is whether the others will let it.
Range: 6950 to 7050 or 7050 to 7100
As we said in the DAX “but it is so one-sided one can see it is now on dangerous ground”.
It has been 2 days since our last table, but to produce a daily range of just 156-points after recent swings and moves, especially on the back of a huge move Stateside, makes us strongly suspect this move in the zone has just happened today.
Nevertheless, it is most certainly spectacular and must be a record, as we can’t ever remember it jumping 600-points, even during the QE excesses.
The fact is though it is on very decent activity, and the zone may have changed, but only really going from one end of the Y1 ratio bandwidth to the other, with all the other ratios by and large unchanged.
End result is it is now back in bullish territory, in a 700-point bandwidth, weeks to go and people are playing.
Range: 11750 to 12450