Well it is not very often the SPX rises by twice as much as the DJX so it is important to highlight it when it does.
Of course, once it was above 2685 and back into the Y1 ratio bandwidth, there was absolutely no reason for it not to take full advantage.
This puts R1 firmly in its sights, but as we said the DJX is still the elephant in the room and so please read what we say below and take that in conjunction with the situation here.
Hardly any change in the ratios today, which is hardly surprising considering the level of activity, and this also says a lot about yesterday’s move.
Range: 2680 to 2705
Activity Very poor
Type: On balance bearish
If the SPX took full advantage of being in their Y1 ratio bandwidth here in the NDX they took total advantage of being in theirs.
Our step-up level of 6475 held the market back for most of the day in fact but it was still just Y1 at the end of it.
It is debateable whether at the end of a 117-point move being 12-points shy of Y2 at 6525 is a hit or not.
We would say that is strike one as we can find no other reason for what would stop such a rampant market at this precise point, after all it is just 0.18% away, but we understand a degree of doubt.
Range: 6325 to 6525 or 6525 to 6725
Type: On balance bullish
To us the fact that the DJX didn’t want to go back to 24900 is very plain to see as is the reason why.
However, for the broader market they must be wondering just why this index only managed a rise of 0.42% while the SPX achieved 0.83% and the NDX a massive 1.80%.
We suspect it may just be a matter of timing as there is still three weeks to go, or it could just be it wants to be the forerunner, whichever it is still going to be the defining event for the US markets for this expiry.
Range: 24700 to 24900