SPX, NDX and DJX Ratio Table 15th August 2017
The SPX set it stall out in the first week by having all that difficulty with Y2 firstly at 2480 then at 2485 where it remains today.
Although we were correct in calling the move in the NZ to its current level.
All the other changes have been below the zone and it seems Y2 is the catalyst for this index this expiry and when we left it was standing at 2420 but as you can see today it is at 2445, so we can only presume the rising Y2 ratio level intercepted the falling market last week around its low of 2437.75.
This just leaves the final element of this expiries jigsaw which is to be in its NZ tomorrow.
Range: 2445 to 2470
The last thing we said in the NDX was “we are now approaching the point in the expiry where the big players if they are interested start getting involved”.
They evidently have done and the number of strikes has also increased but we don’t know when so it is virtually impossible for us to say whether this was pre or post the 131.20 point fall.
If it was pre then just to get this index back to its NZ for tomorrow will be an enormous relief we suspect, and the low of 5783.36 is also suspiciously close to where R1 currently resides.
Range: 5875 to 5925
There have been a lot of changes in the DJX but when we left this index was struggling in the R1 ratio bandwidth therefore we were calling the daily range as 100 points depending on the open.
Back on the 2nd August R2 ratio was at 22200 and as it is still there it is safe to assume it has been there all along so the high last week of 22179 and its encounter with R2 was evidently the catalyst for the rather rapid retrenchment.
Despite the fact the NZ has moved up this index remains stubbornly above it and puts it in direct competition with the SPX, but judging by how ardent the bulls have been we don’t think this index will trouble itself too much.
Range: 21700 to 22100