First test of R1 for SPX, NDX in clear skies and DJX on strike 3, today’s ratio table, levels and comment.

SPX , NDX & DJX Ratio Table 6th June 2018

The SPX is about to be snapped out of its doldrum as it is about to face its first real test of this expiry, R1.

It is too close to call whether the high yesterday of 2752.61 was a test or not, it was 2.39-points away, and on that basis probably not, but as this index has risen so much this is now only 0.08%, so on this basis, yes, it probably was.

Either way, today should answer this one way or the other, but it is only R1, so it may the first test but it is hardly a stern one, especially so for a triple.

Also, worth bearing in mind that next week it is the rollover so everything should be ramping up naturally now.

Range:            2730  to  2755

Activity           Very poor

Type:              On balance bearish

If the NDX was going to react to their Y2 ratio the chance was the open on Monday, the damage having been done with the Friday close at 7083.93.

The fact it opened up just below 7100 meant it was job done and that it had clear skies above.

It was always going to be a long shot for the minimal Y2 to contain any market, but on one of the big expiries probably verging on the highly unlikely.

They have added a swathe of strikes but as yet no great out of the ordinary activity that we can discern, so it will probably end up like those other similar expiries where the zone starts playing catch-up with the market.

That is the trouble, or benefit, of no depth of ratio, as this index is now up 300-points (4.38%) in just over 2-weeks. But as it’s upwards then everybody is happy of course.

Range:            7075  to  ….

Activity:          Moderate

Type:              Neutral

As we said on Monday the DJX had a lot of zero ratio to play around in now, and it obviously took full advantage of its 200-point zone.

The issue on both Monday and yesterday was the upper boundary at 24800.

The fact this index closed at 24813 and 24799 respectively means today will be strike 3, and the way the ratios have moved means Y2 at 25100 is now its last hurdle before it can make a full-on assault on DR.

Time is now an issue, and perhaps also the SPX, as it is now entering its R ratios then it may not be such a willing co-conspirator.

Range:            24600  to  24800        or        24800  to  25100

Activity:          Very poor

Type:              On balance not bullish