SPX , NDX & DJX Ratio Table 18th Dec 2017
We think it would be fair to say in the SPX the start of the Jan expiry is bit of a scramble.
It was very nicely proportioned but what has upset the natural development here and hence a conventional transmission was the total lack of movement in the Dec NZ.
Here the NZ was already higher, at 2595-2605, but already 2645-2655 as well as 2670-2680 are making moves, hence it’s bit of a scramble as so very early on the ratios are tumbling above the already surpassed zone.
This of course inhibits this expiries evolution and as one can see there is plainly more depth of ratio below the zone than above, and what’s happening only serves to make this more pronounced.
All very bullish but also very forced and as it is not a more normal and natural progression it leaves a dearth of ratio in its wake, which can be very dangerous.
Range: 2605 to 2685
Type: On balance only just bearish
Another high level of activity in the NDX but as we have been saying the bar is so low just turning up gets it excited.
The high on Friday was 6470.92 which is coincidentally close enough to call a test of Y2 here, but more importantly the close wasn’t far away which brings opening gaps into play.
It wouldn’t take much to get this into Y2 from day 1 and there is so little ratio around there just isn’t anything higher so it could be game over before it even starts.
Range: 6325 to 6475 or 6475 to ……
Activity: Very strong
Type: On balance bullish
Virtually no change in the DJX today or from what we were saying in the rollover.
No changes in any of the ratios today which is hardly surprising as activity was so low, and on the first day actually makes this worse.
How 24500-24700 is not the new NZ we don’t know, but it will be very soon we feel.
However, the elephant in the room remains that colossal position that gives rise to B1, so that’s the target and where the trench warfare will be fought we believe.
Range: 24500 to 24900
Activity: Only just registered