SPX, NDX and DJX Comments and Ratio levels

To recap the SPX spent almost all of Friday inside its NZ, sort of a time to decide, then on Monday it evidently had as it opened up nigh on 8 points but more significantly at 2431.39 which was above the upper boundary.

Therefore it looked like the bulls had won that decision as it started to move ahead and got as high as 2439.17, up 15.76 points or 0.65%.

The fact it was so reluctant to follow the DJX, see below, as well as the fact it finished back inside its NZ for the holiday tells us that this decision was far from unanimous, so it looks like there is still a fight going on here.

Range:            2420  to  2430     or      2430  to  2455

Activity           Very poor

Type:              Bearish

To recap for the NDX the easiest thing is just to repeat what we said on Monday; “, the difference here is that activity was very high indeed at the end of last week and this historically suggests an agenda or view that is normally not static”.

Actually this index also opened up strongly, plus 33.44 points, but at the end of the day finished down 49.96 points going a long way in the opposite direction from the other two and into the bargain finishing in bear territory for the first time this expiry.

Range:            5500  to  5625

Activity:          Poor

Type:              Bearish

As we mention above the DJX was setting the pace on Monday, although somewhat ironically it was the smallest mover at the start only opening up 43 points, as a percent quite some way behind the others.

On which subject here the high was 21562, or 1%, so considerably more than the SPX, but at the end of the day it too finished back inside its NZ.

And therein lies the reason as on Friday it was the SPX that stayed inside its NZ severely limiting this index’s potential whereas on Monday it was this markets turn, and here don’t forget their zone is 200 points so hence the differentials.

Therefore both markets have toyed with bear territory and now both have tested the upside so we guess today they will decide.

Range:            21300  to  21500     or      21500  to  21900 

Activity:          Average

Type:              Neutral