Of course, being the expiry today it is more to do with the EDSP than the actual close but the significance of the DJX getting back into its NZ for now is not lost on us.
Due to the bubble this index has been in this year we have not been making any forecast, just expecting it to continue pushing the ratio boundaries as it marched onwards.
So, as it didn’t actually do that this time some may argue that we missed, but as it became sensitive to the ratios again it was Y2 at 23500 towards the end of the first week beginning of the second that stands out for us, especially considering where it is now finishing.
Range: 23400 to 23600
The main thing to watch is the NZ in December and any indication that it might actually move.
This is because if this index does return to normal then the zone has a very important role to play, a role that it has been blatantly obvious that this index has not been concerned with for the previous ten months.
Also, one swallow does not a summer make, and although Oct and Nov have been moving towards rationality we are never going to be able to shrug off a degree of scepticism.
Range: 23100 to 23600
Activity: Very poor