SPX , NDX & DJX Ratio Table 27th April 2018
What changes there are in the SPX are significant, almost as much as what hasn’t.
The most obvious is the zone dropping to 2670-2680, and a falling zone is bearish, and to make matters worse 2645-2655 is looking very likely for the next move.
Then what hasn’t changed is the R ratios below the new zone, which means in the entire week they have not strengthened, which is almost as bad as falling.
Above the zone it is the opposite, with them all making good progress inwards, but because of the zones drop actually find themselves further away from it.
And that is the main issue, as the Y ratio bandwidth is still a massive 150-points, so really these 1%+ daily moves are in fact quite tame.
Range: 2595 to 2675
Type: On balance only just fractionally bearish
Last expiry in the NDX it did prove sensate to Y2, testing it twice at 6325 before rallying.
However, this does not make May a given to being the same, as despite the weakness earlier on this week, when it got down to 6464.74 and 6426.57, this is still some 300-points above where the unchanged Y2 is in this expiry.
Y2 has strengthened above the zone, but considering the level of activity and type, this is not a good thing.
At the end of the day the Y1 ratio bandwidth is still a staggering 900-points so these 2% daily moves are, just like the SPX, quite tame.
Range: 6625 to 7025
Type: On balance bearish
For us this last week has been all about the DJX.
On Monday it had a 208-point range, but as it was the first day of this expiry it was just putting out its feelers to see which way the ground lay.
Tuesday and Wednesday were the main event and the low on each day was 23828 and 23823 respectively were both very solid tests of R3 at 23800.
The fact it has taken what is high ratio level so early on is a concern, the fact it is now on strike 3 means it is also now only very tentative support as well.
To compound this is the fact it is also on its own, as it does not get any help at all from the R ratios in the SPX or NDX.
On a slightly more positive note this is also true going the other way, so if these tests of R3 do prove sufficient R3 above the zone does not kick in until 26000.
Range: 23800 to 24600
Type: On balance only just bearish