SPX , NDX & DJX Ratio Table 4th October 2018
It is bit of a slow-grind in the SPX at the moment, and it doesn’t seem to be coping particularly well with even the lowly Y2 ratio.
On Monday it looked to us the wind was taken out of its sails by both the DJX and NDX, of which more below, and then on Tuesday the intraday high was 2931.42 and although a bit better yesterday it still finished below it.
However, the ratios continue to climb below the zone, bullish, and recede above it, also bullish, so it’s just a question of getting the desire.
Activity remains low, and as this is an intermediary expiry that does mean low, so until that perks up we can’t see things change dramatically here, although it is crying out to test R1 and stimulate something.
Range: 2905 to 2955
Type: On balance bearish
The NDX has similarities with both the SPX (above) and the DJX (below).
The most striking of which was their own encounter with Y2, then at 7700, on Monday, although here the intraday high of 7700.56 does do justice to it.
Basically, it was slapped back unceremoniously as if it had run into a brick wall.
The other similarity with the DJX is that although the zone hasn’t moved up here it is about to.
In respect of the similarity with the SPX that is the strength in the ratios below the zone and the weakness in them above it.
Perhaps another similarity might be the lack of desire to go back to where Y2 once was.
Overall, especially under these circumstances, we would be bullish, but this time the lack of desire across all three does raise a significant concern, as no matter what the circumstances being so timid as to react to just Y2 makes it very susceptible to anyone, or anything, saying boo.
Range: 7525 to 7725
Type: On balance decently bearish
There have been very significant changes in the DJX, and we suspect Monday was the catalyst.
That was the day of the trade agreement so this index bolted out of the door, opening up 140-points, but then, as we published, the top of their zone was lurking at 26700 to ambush it.
The intraday high of 26737 does not do justice to how it stopped such a rampant market in its tracks and basically held it there all day, and although it gave up 86-points from its high it still closed up almost 200-points.
Today, we see the changes, but we suspect these happened a couple of days ago, and the most obvious of which is the move up in the zone.
Second, is the fact this zone now covers 300-points.
Thirdly, and perhaps the most important, is that most of the ratio above the zone has gone, with it reverting back to where it was in the first week of this expiry, with just the minimal Y1 present.
Basically, it is no wonder this index is making all the large moves, and there certainly isn’t any ratio around to change that at the moment.
Range: 26700 to 27000