The SPX is slowly changing up through the gears and Friday was a decent performance but hardly electric.
However now we are getting somewhere and as we said “R1 next stop” and this is just over ten points away now and should provide the first real test for this index.
Part of the problem is we are not even at the halfway stage of this 5 week expiry and even though last week seemed bullish enough it certainly has not stimulated activity.
The main change is R2 slips a notch but 2540 is only just below the threshold so should still pack a punch as we like to say.
Range: 2480 to 2530
Activity Very poor
Type: On balance bearish
The NDX did breakout of its NZ on Friday but it did require quite a bit of effort.
The open was 5941.78 just below the upper boundary which it then went on to test, got knocked back to the low of the day, rearmed and had another go an hour or so later and then took another hour camped on 5950 before it finally broke free.
The trouble is the scenery has changed considerably since it was last here and 6025 rather than being just a step-up is now a solid Y2 and represents a considerable jump from the Y1 ratio bandwidth it currently finds itself in, so game on as they say.
Range: 5950 to 6025
The DJX is just being a little tease although like the SPX the lack of any meaningful activity is certainly exacerbating matters.
The firm favourite to be the next NZ is 21300-21500 which is now definitely in front and almost there.
Hopefully when this happens this index being in the middle of a 200 point bandwidth of zero ratio will start getting back to the 100 or so point daily moves.
Range: 21900 to 22700
Activity: Only just registered