SPX , NDX & DJX Ratio Table 5th April 2018
It was a huge day on Tuesday in the SPX, the day of our last comment, and it was all about R2 at 2595 and R1 at 2600.
The market opened at 2592.17 so the battle was on from the very start, and it basically spent all day around these R levels, but most importantly of all it finished at 2614.45, above them.
In keeping the Y ratios now stretch all the way down to 2595, and as long as we remain below the zone we stand by our statement “but no mistake we are still in a bear market”.
However, as we also said, “on a more positive note if this index can get back into that ocean of Y ratio then just look at what the NDX is doing” so all in all exactly as expected.
Big moves are now only to be expected but please bear in mind the market is still below its zone, where the ratios continue to fall, and which in itself may see another drop, while they still rise above it, all of which is bearish, so it is by no means out of the woods yet. And beware of whipsaw in a colossal 100-point trading range.
Range: 2595 to 2695
Type: On balance only just bullish
That is strike 2 of Y2 at 6325 for the NDX as the low yesterday was 6326.54.
Nothing else has changed but we have to speculate whether the reaction would have been so strong had the DJX not also hit their DR at the open.
Activity is still ticking over and now we are half way through perhaps we may well start to see some R ratios appear, although Y2 seems to be doing a fine job for now.
Range: 6325 to 6775
It seems DR at 23600 still remains a critical level in the DJX despite it being breached on the Monday.
The fact DR has been at 23600 since Tuesday 28th March also means it has had quite a degree of solidity.
However, please note that the zone here has dropped yet again, this time to 24400-24600, which in itself is not a good sign, but rather ironically it does make it closer and therefore easier to get back above.
In the meantime, activity has returned and this index now has a thousand-point Y ratio bandwidth, and with over two weeks to go boring we suspect it will not be.
Range: 24100 to 24400