SPX , NDX and DJX Ratio Table 27th September 2017
This time last week the SPX was in a tussle with Y2 at 2505 and in fact the first four days the high was above it and twice this resulted in a close above.
We did point out that we were talking about it battling it out with the minimal Y2 but in truth we actually miss even that minor confrontation these days.
It is really saying something when this index doesn’t even want to play around in a 25 point Y1 ratio bandwidth contenting itself with a small daily range.
However it is perhaps worth pointing out that although it doesn’t want to push against Y2 the normal reaction under these circumstances would be a reversion to its zone, and it hasn’t done that so that means not a bear in sight.
Range: 2480 to 2530
Type: On balance only just bearish
Yesterday was not bullish for the NDX despite it ending up 14 points.
Basically it opened up strongly, but still shy of the bottom boundary of its NZ, and then went on to try to get back over it with the high being 5908.47.
The fact it failed is bearish and today the ratios are weaker below the zone and better above it which is also bearish and, needless to say, is the fact it remains in bearish territory (below the zone).
It is currently the only one below its zone and the fact it tried shows the bulls are there and willing to give it a go, just not quite strong enough although they do now know what is required if they want to go again.
Range: 5650 / (5775) to 5900
Type: On balance bullish
It seems all that activity in the DJX hasn’t sparked anything and today it collapses back to our newly created level.
The main point of interest is that 22300-22500 is again back on the cards as the next NZ, and the bottom boundary could still be 22200, but if it’s not then should it change at these levels that would put the current market below it, and wouldn’t that be a novelty.
Range: 21900 to 22700
Activity: Only just registered