SPX , NDX and DJX Ratio Table 26th Jan 2018
The SPX has started the Feb expiry exactly where it left the Jan one it seems.
Basically, the ratios above the zone are receding under the relentless onslaught of the market, which in turn is dragging the zone up behind it all the while the ratios below the zone desperately try to fill in.
This respective weakness and strength and rising zone are all bullish, however please be aware that this is all one sided and therefore unnatural, and with the corresponding R2 level nigh on 200-points away this is very much not a risk-free environment.
Range: 2820 to 2845
Type: On balance bearish
It is difficult to place the NDX in either the SPX or DJX camps as it is still at least trying to play by the rules.
The trouble is that being alone makes it all the harder and this is further compounded by it not being in fashion at the moment.
Nevertheless, when we mention that 6925 is a huge step-up level then the last two closes might make a bit more sense.
Suffice it to say at this level they are just below the Y2 threshold whereas below it the ratio is just above the zone threshold they are so low.
Range: 6825 to (6925) / 6975
Type: On balance just fractionally bearish
The catalyst behind the markets interstellar journey is the DJX and as such has been governed by other factors than the ratios for quite a while now.
The Feb expiry is different from the Jan one, although the sudden appearance of B1 shows that the same situation is present, but we will say it is nowhere near the colossal magnitude we saw last trip, though it is, however, still big enough to jump straight to our highest level.
The difference is our delta ratio, which is standing at 99.9%, and this shows that there are as many bears out there as there are bulls.
However, as you can see from all the Y ratio below the zone this comes across as something more akin to insurance whereas we all know what tends to happen with a singular large bullish position.
Range: 26100 to 26400 or 26400 to 26600