the US markets were closed on Monday we still expected a bit more zip out of
them during the rest of this week.
considering what we said about the SPX in our last comment; “although, the Y ratio bandwidth is
considerably thinner, it is still absolutely massive”.
ratios have been evolving, and we are seeing some good strengthening below the
zone and some weakness above it, which is bullish.
this, we have lost Y1 below the zone altogether, whereas above it Y2 now starts
at 2655, and more importantly R1 slips from 2670 to 2680.
significant, as on last Friday the intraday high was 2675.47, and it has
noticeably not gone near there since.
The way it
is going also means we may well see a move up in the zone to 2645-2655,
competing the bullish triumvirate.
At the end of the day, we think it is the DJX that is going to be the deciding factor, so read what we say below first, then apply it to what may happen here in the SPX.
Type: On balance bearish
As we said in the NDX; “so,
don’t take those ice-skates off any time soon”.
Activity remains low, but basically the benchmark is so small,
by just achieving what they have done, it is actually rather pathetic.
Nevertheless, it hasn’t stopped them adding about 50 new
No problem if it stimulates interest, but it plainly doesn’t, so
Y2 below the zone has come in a fair way, but at the end of the day it is still all Y ratio, so enjoy the skating.
Type: On balance only just fractionally bearish
“bigged up” the DJX in our SPX comment above, and for very good reason.
In our last
comment about the DJX we mentioned; “therefore,
for this expiry, 24600 is a really key level”.
market must have been listening, as that very day, Tuesday 22nd, the
DJX opened at 24607, which also became the intraday high.
The next day
it had a very aggressive test of its zone, peaking at 24700 and falling as low
as 24307, both rather coincidentally being 100-points either side of their
zones upper and lower boundaries.
yesterday was a bit more precise, with the intraday high of 24626, and intraday
low of 24422, making this a near perfect zone bandwidth test.
To be fair,
we would count both as zone bandwidth tests, so today fully expect a breakout.
test alone suggests it, two in a row, double hint, and on top of all this,
another test would be strike 3 anyway.
Range: 24400 to 24600
Type: On balance only just bearish