SPX back in the Y ratios, NDX steady and DJX activity still key, today’s levels and comment.

Interesting dynamic in the SPX today.

The ratios continue to tumble above the zone and increase below it and by tomorrow 2695-2705 should be the next NZ, which is abut as bullish as you can get it.

However, the fly in the ointment is the fact the ratios have receded so much the market now finds itself back in the Y ratio, which in fact it would have done even if it didn’t move yesterday.

So, this is where it gets interesting, as despite all the bullish signs the trading range today is the Y ratio bandwidth, and this still starts at 2680.

Range:            2680  to  2755

Activity           Moderate

Type:              On balance bearish

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In the NDX it is nice to see a stationary zone but with the rollover starting next week we very much doubt we have seen the last of them.

The ratios are in fact stronger across the board, but it will have to go some way yet to redress the persistent weakness above the zone.

However, below the zone they are all firmer, but still a very long way away so only pertinent in that it represents a view.

Although the daily range was 40-points the fact it is in so much Y ratio that is actually rather tame and it could get far more volatile from here on in.

Range:            6575  to  6725

Activity:          Strong

Type:              On balance bearish

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Activity in the DJX has gone the other way today, so it is difficult to get excited about it.

The one aspect we should mention is that as it should be stuck in its “uncomfortable” trading range (100-points to the big figure depending on the open) the last two days take on a slightly different complexion with this in mind.

Tuesday the low was fine at 25308 and yesterday the high 25404 was fine as they corresponded with the respective opens.

However, on Tuesday the high overshot by 39-points whereas yesterday it was the low by 44-points, which can often reveal where the most effort is being made.

Range:            24900  to  …… 

Activity:          Only just registered

Type:              Bullish

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