SPX , NDX and DJX Ratio Table 27th Oct 2017
Judging by what happened yesterday in the SPX then Wednesday was indeed the decider, for now at least.
They opened up almost three points and hardly took a backward step further consolidating the previous close above their zone.
The ratios continue to strengthen below the zone, which is one out of the three bullish signs, but activity suggest apathy rather than involvement.
However, we now know the market knows where Y2 is from Monday’s test and also where their zone is from Wednesday’s test, so all it has to do is decide which way it wants to go, simple really.
Range: 2555 to 2595
Type: On balance definitely bearish
Wednesday wasn’t the decider for the NDX yesterday was.
We claimed yesterday that on Wednesday we got both the breakout as well as the close inside its zone but explained the close was due to the actions of three other indices.
Yesterday there was no hiding as it got as high as 6066.51 after a virtually unchanged open but just could not consolidate retaining its hold within the zone, which is not good news for the bulls.
Furthermore, one may remember our step-up level here was 6050 which is also the bottom boundary, so a double whammy.
The next stop should be Y2 then.
Range: 5975 to 6050
Type: On balance just bearish
Was yesterday further evidence of the DJX returning to normal?
Actually, we honestly hope not because there is so little ratio around and if it did it should head straight for its zone, and although we don’t believe in “crash-ups” we also don’t like “crash-downs”.
Anyway, and as you know we don’t believe in coincidence either, but yesterday Y2 was at 23400 and that is exactly where the market closed, hmmm.
Y2 has slipped a bit today but this index is not about fundamentals or derivatives, as every other index is currently working out where they want to be in context to their respective zones but the DJX is noticeable by the fact it is not, so therefore the deciding factor here will be normality and the return thereof.
Range: 22700 to 24000