SPX , NDX & DJX Ratio Table 11th April 2018
In the SPX our last comment on the 5th April was “big moves are now only to be expected but please bear in mind the market is still below its zone, where the ratios continue to fall, and which in itself may see another drop, while they still rise above it, all of which is bearish, so it is by no means out of the woods yet. And beware of whipsaw in a colossal 100-point trading range”.
Full marks then.
Zone now 2645-2655, whipsaw, big moves and ratios still diverging.
At least the market is now above its new zone, but the real point is that we can’t remember a Y ratio bandwidth in this index at this stage of an expiry that stretches for a colossal 185-points, and with the rollover next week it is not going to get any quieter.
Range: 2595 to 2780
It seems a very long time ago the NDX was testing Y2 at 6325, and not just the once as it needed confirmation with the low of 6322.60 on the 2nd April and then 6326.54 a couple of days later resulting in an eye-watering 233.52-point (3.69%) bounce.
However, in trading days that was just 4 days ago and already it has 300-points between then and now, which is tremendous going.
And we can’t fault them for trying as they have added another dozen strikes, and activity is at least present, but alas still no change in the ratios.
No need to mention the Y ratio bandwidth here as that has been the point all along this expiry and it was, is and no doubt will continue to do exactly as this situation dictates.
Range: 6325 to 6775
Type: On balance only just bearish
In yet another of those coincidences the DJX managed to cling on to its zone by its fingertips, which is not too dissimilar to the SPX (1.87-points above their zone).
However, the zone here hasn’t changed but quite a few of the ratios have.
This is all the more remarkable due to the level of activity, but they have come in significantly at both ends.
One example is R3 below the zone that last Friday was 23800 (nb. Low 23738) but today is 24000.
This is worth noting as the previous low in this index was 23523 and it was DR at 23600 that stopped the plunge that time, and on both occasions this index was staring at a drop of almost 800-points.
Rather ironically it could be this index that has a calming influence on the SPX as here the Y ratio bandwidth only stretches for 800-points.
Range: 24200 to 25000
Activity: Very poor