US Ratio Table 2nd August 2017
The only development in the SPX is the fact that 2470-2480 may become the next NZ.
We do not think this is by design but rather the fact that this index has spent the best part of two weeks trading at this level, so more akin to natural erosion.
There is certainly no ratio driven reason why this should be the case, in fact the exact opposite, and activity again today reflects the confusion this is causing, so our best guess is that really this index wants to go down but the DJX is precluding it from doing so.
Whatever the reason the upshot of all this is that the ratios are almost exactly the same now as when this expiry started, so apart from the acres of Y ratio above the zone it still only goes up to R2.
Range: 2455 to 2505
Activity Very poor
Type: Not bullish
The NDX opened up strongly at 5900.64 which put it in the middle of its zone.
It didn’t get much higher but they did test the bottom boundary, getting as low as 5880.45 before finishing almost back to where they opened.
We are now approaching the point in the expiry where the big players if they are interested start getting involved, however we did notice that in the first quarter this index seemed to be left alone while everything, or everyone, concentrated on the DJX.
If that is the case this expiry then the NDX tends to become very compliant to the ratios, although there are precious little of them still.
Range: 5875 to 5925
Type: On balance only just bearish
Just as we said yesterday it seems we are in a repeat loop of the first quarter when the DJX just did its own thing.
The open was up 70 points at 21961 so by the definition we have repeated below that would have made our range yesterday 21900 to 22000.
The high was 21990 but the low was 21940, but then it has got its blinkers on.
“Therefore back then when this index forced itself into a level it was uncomfortable with we saw it stuck within a 100 point range dependent on where it opened”.
Range: 21700 to 22200