SPX , NDX & DJX Ratio Table 10th May 2018
When we pointed out the extremeness of the Y ratio bandwidth in the SPX at the start of this expiry one could be forgiven for perhaps not fully understanding the implications.
However, after the low last week of 2594.62, which tested R2 (nb. Now R1) below the zone, this should not be the case now.
The rollover starts next week, so time is running out, but R1 above the zone is now only 47-points away, so now eminently achievable, to chalk up the second target for a perfect expiry.
Range: 2680 to 2745
For the NDX the move has been even more extreme, but then again it was the index with the widest Y1 ratio bandwidth.
In fact, its low was 6539.86, which was then the bottom boundary (6550) of its zone and up to yesterday that is a very impressive bounce of 356.07-points, or 5.44%.
Again, not understanding the implications of an extremely wide Y ratio bandwidth should now be a thing of the past.
The only difference today is the zone has moved up, but there is such a lack of ratio we could quite easily make the zone 6550-6725, which is truly scary.
Activity is decent but no new strikes to us means everyone is still on the side-lines.
Range: 6725 to 6975
Type: On balance just fractionally bearish
Today could be a big day for the DJX as it could get back into its zone.
Yesterday the high was 24586, so no doubt the first test of its zones bottom boundary at 25600.
All a very long way indeed from its test of R3, in fact it was quite the rear-guard action as in the first week it was all about R3 at 23800 providing support, and then the following week when it had fallen to 23600, the low being 23531, but was then joined by the SPX and as we said it did need a friend at that time.
The DJX has been the force so far this expiry, whether it remains so is questionable, but it is still below its zone and therefore in bear territory.
So, the lower boundary is hugely significant as achieving it would not only give it 200-points of no ratio above it, but also mean it is no longer bearish.
Range: 24100 to 24600 or 24600 to 24800
Type: On balance not bearish