SPX , NDX but it’s all about the DJX, today’s Ratio Table, levels and comment.
can’t say you weren’t expecting a wild ride.
the ratios should be calculated daily, but nevertheless because of their
current alignment this is not so important in the SPX as it’s all about the Y
housekeeping, this index has already tested R3, back on the 26th Dec
when it was at 2345 and the intraday low was 2346.58, and very significantly,
on the very last trading day of 2018, the market closed at 2506.85, which in
these volatile markets is the closest you will get to hitting its zone.
significant, was in our last table R1 was at 2445, so is still a step-up, and
yesterday’s intraday low was 2443.96.
are as in the table above, but the truly unprecedented magnitude of the Y ratio
bandwidth remains virtually unchanged, at the colossal 305-points.
Type: On balance only just bullish
When we last commented on the NDX it had recovered all the way
back to its zone, which on the end of a 6.16% move was very impressive indeed.
However, this meant on the last trading day of 2018 it was
actually above its zone, and, in fact, the intraday low was 6273.94, which was
a bounce off the upper boundary of its zone.
When you appreciate this, and then read our comments regarding
the DJX, the significance of 23400 becomes even more meaningful.
Especially, as both here and the SPX, were above their zones, and
with so much Y ratio above them it could have been a very different story
indeed on Wednesday, which may in turn have given a far closer line of support
On which subject, the open here yesterday was 6274.76, which
should have a very familiar ring to it.
Otherwise, not a lot else has changed, apart from the addition of another vast swathe of strikes, which, as usual, hasn’t resulted in any activity, which in turns begs the question of why bother?
Type: On balance bearish
have some Y ratio in the DJX at last.
question is whether or not this means it is going to join the party?
moment it is definitely the “party-pooper” as at the end of 2018 it was the
only index we cover not to be anywhere near its zone.
In fact, it
went one better, as on the first day of trading in 2019 the intraday high was
23413, which was then R2, and which evidently brought an abrupt halt to any
hint of a recovery, moreover this malaise eventually affected the other two.
If it does
get its act together, and joins the other two on the same page, then we should
see the zone here drop, and it could drop to 23400-23600.
makes 23400 doubly more significant, as not only is it the last barrier before
this market gets into its Y ratios, it could also potentially be its zone
And, the good news is that there is still two more weeks to go.