SPX & DJX now at crucial ratio levels, NDX we hope you were “hanging on”. Today’s table, levels and comment.


SPX, NDX & DJX Ratio Table 23rd March 2018




Exactly as we said “so it certainly won’t be dull” and right away the SPX on that Monday went all the way down to test Y2 at 2695, the low being 2694.59.

The fact it bounced off Y2 revealed a high degree of sensitivity and the next couple of days were spent just meandering around within its Y1 ratio bandwidth.

The trade war definitely put fundamentals in the driving seat and significantly it went past R1 at 2670.

But just as significantly the close was right on R2, which now becomes the critical level in much the same way 7050 was in the FTSE.


Range:            2595  to  2645        or        2645  to  2670

Activity           Good

Type:              On balance bearish



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Also, as we said in the NDX “So, hang on tight as with no, or extremely little, dynamic delta we are now in the middle of a huge frozen lake on razor sharp ice-skates where even the slightest puff of wind could blow the market a very long way”.

However, it was not so much a “puff” of wind but a full-on Trump trumpet which has seen this index drop 337.69-points, or 4.81% in as many days.

The zone has narrowed, slightly, the Y2 levels have come in, on top of which they have added almost 30 strikes, so there is interest, but where one says “from the ground up” this expiry has only just about finished the foundations.


Range:            6375  to  6775

Activity:          Very strong

Type:              On balance bearish



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The DJX on Monday the first day of this expiry -yes folks we have another 4-weeks of this- was the other index to test their Y2 level, getting as low as 24453 when it was at 24400.

Again, a good recovery but nothing very spectacular.

However, significantly the close yesterday was 23957, which is below R3, which is also the first R ratio this market has encountered.

Like Monday one can’t read too much into 40 odd points on such a large index, especially when it comes on the back of a substantial move, but it does leave 24000 as a very significant level.

There has also been a small change in the zone, and several changes in the levels, as one would expect on very decent activity.


Range:            23700  to  24000      or        24000  to  24800

Activity:          Strong

Type:              On balance only just bearish



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March 23rd, 2018 by