Everything is getting very exciting in the SPX now with the market moving down to meet the new NZ yesterday.
This seems to have shaken it awake, although activity could do better, but the low was 2446.55 and as it was at the bottom of such a large fall there is no doubt that was a test of the zones bottom boundary.
The fact it closed above the upper boundary as well as the fact the NZ may well revert to where it was means we are probably just getting started.
The ratios are stronger below the zone and weaker above it with several movements, but this is also bullish, but at the end of the day it is now acting exactly as it should with so much Y ratio still around.
Range: 2445 to 2455 or 2455 to 2490
Type: On balance just bearish
For the NDX their NZ changed a couple of days ago but yesterday the end result was almost identical.
The low here was 5890.25 and although 15 points shy of the bottom boundary as it was down 97.65 points at that stage and falling like a stone we are calling that a hit, or at least their first encounter with any futures buying up to then.
It has also closed above its NZ and activity has been stimulated and as you can see from the table above there is no doubt that the ratios are firmer below the zone and weaker above it.
Range: 5925 to 5975
Activity: Very strong
The DJX is definitely the odd one out as so far this expiry it hasn’t been in its zone.
Even yesterday the low was only 21709, still just over a hundred points above its low of 21600 back on the 21st August.
Nevertheless now all three are just above their respective NZ’s so in that respect at least they are all now in sync.
Range: 21600 to 22100