SPX , NDX and DJX Ratio Table 2nd Nov 2017
So, it seems like the SPX is still being as sensitive although a bit more aggression is definitely creeping in.
The aggression comes from the open which gapped up 7.95-points to 2583.21 but more importantly this was above where the market thought Y2 was, at 2580.
Of course, we saw it had moved to 2585 yesterday so just when it thought job done it runs slap bang right into it only getting as high as 2588.40.
We did think this momentum would carry it through but evidently not, however it is still only Y2, which is now on strike 4, and this index is getting bolder.
Range: 2555 to 2605
It was definitely one of the stranger days in the NDX and for all intents and purposes it looks strangely like a bandwidth test.
We talk of multiples of 25 in the NDX and if one considers that it closed on Tuesday at 6248.56, so say 6250, then either side we are looking at 6225 and 6275.
As the low on Wednesday was 6224.58 and the high was 6276.66 it looks to us that it was testing where the futures activity came in either side, and probably more importantly how much there was of it, or in other words a bandwidth test.
At least now it knows, and if it goes back to one side or the other it generally means a breakout, otherwise we have the trading range although it should turn shy of any further tests.
Range: 6200 to 6325
Type: On balance decidedly bearish
The DJX is still slumbering with the smallest opening gap by far yesterday at just 0.28% but it is showing signs of beginning to wake up.
Interestingly the high yesterday was 23517 which was Y2 on Monday so although it is 2 days later there is still a small differential that goes to show it does retain a degree of sensitivity.
However, this on its own we suspect would not have done much without Y2 on the SPX acting as gang leader.
Again, it may have taken 5 attempts last expiry but eventually this index got past R3, so in reality the Y ratios should hold no fear at all.
Range: 22700 to 24000