SPX and DJX both bounce off R1 on Fri but only DJX and NDX finish in their zones, today’s levels, table and comment.


SPX , NDX & DJX Ratio Table 6th March 2018




The last 4 days since we published has been all about synchronicity.

Here in the SPX we left it at 2713.83, which was just above its zone, having collapsed 65-points from being in its R1 ratio bandwidth, which was at 2765 back then.

It left its zone in its wake on Thursday, which was due to the DJX (please see below), closing at 2677.67.

Friday was this index’s big day as it got as low as 2647.32 for a test of the corresponding R1 below the zone at 2645.

The degree of sensitivity is a bit exaggerated as it was most certainly a joint effort with the DJX, but there is no denying R1 at both ends is proving potent.

Importantly though it finished just 3.75-points shy of its zone, which is very close considering the magnitude of the move and that the target is just a mere 10-points wide.

The most important aspect on Monday was the high of 2728.09, or Y2 (2730), which may well signal an increase in sensitivity or just plain exhaustion.


Range:            2705  to  (2730) / 2755

Activity           Poor

Type:              Neutral




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The trouble with the NDX is that it just simply doesn’t have any R ratios.

And this is week 3, so it is very unlikely to do so now, unless the big players wade in although we haven’t seen them for quite a while and it would be impressively brave.

It does want to be a part of it all the same as their close on Friday at 6811.04 put them fairly close to the middle of their zone, so there is a degree of tracking going on.


Range:            6875  to  ….

Activity:          Moderate

Type:              On balance bearish



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The DJX has been the main issue since we last looked at it on Wednesday 28th Feb.

Back then it had just hit R2 at 25800, the high being exactly 25800, but more importantly their zone had just reverted back down to 24400-24600.

This move in the zone proved critical as the low on the Thursday was 24442, which would ordinarily be a little bit above what we would call a test of the bottom boundary, but as this came at the end of a 743-point move with the corresponding jump in the Vega we are more than happy to call that a test.

The crux came on the Friday when it got as low as 24217, under quieter circumstances for sure, but again we have no problem calling that a test of R1 at 24200 (nb. Today R1 is 24300).

The main point being is that on Friday at about the same time this index and the SPX both hit R1 and bounced considerably.

However, here they went on to test their zones upper boundary (high 24592) before finishing near to the middle of it.

Monday saw a test of their zones bottom boundary, low 24387, before breaking out above it where there is still a lot of Y1, but after a 1600-point journey between its R ratios it must be exhausted as well.


Range:            24600  to  25400

Activity:          Very poor

Type:              On balance bearish



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March 6th, 2018 by