SPX, NDX and DJX Ratio levels and commentary

Again just as we said this should be what happens in so much Y ratio for the SPX and at its worst it was down 35 points.

At least it has sparked a degree of activity but also don’t forget this is a long expiry so there are still 3 weeks to go.

It didn’t test R1 so that could still be on the cards and the close, having recovered an impressive 15 points, is so near to the bottom boundary of its NZ it is almost churlish to mark it below, but we have just for the sake of 0.30 of a point.

Range:            2370  to  2420     or     2420  to  2430

Activity           Good

Type:              On balance bearish

What a coincidence for the NDX, not that we believe in them where markets are concerned at all, but after such a tumultuous day this index ends dead centre of its NZ.

More importantly there have been another swathe of strikes added, although after two such additions it is still but a third of how many the mighty June had, and activity has gone stratospheric.

Impossible to tell if it’s insurance or directional, but if it’s the latter then there is still far too much Y ratio so the fun could just be getting going.

Range:            5625  to  5675

Activity:          Off the scale

Type:              Bearish

We have to be churlish again in the DJX and mark it just below its NZ, although 13 points is a very close call on a twenty one thousand point index.

Perhaps worth considering is that if it wasn’t for ourselves being particular all three indices would be in their respective zones.

More importantly the high here yesterday was 21487, coincidentally (hem hem) also 13 points, which is a test of the upper boundary of their NZ, so therefore yesterday was a NZ Bandwidth test so we would therefore expect a breakout today.

The big change in the ratios is Y2 below the zone drops back to 19100, which is a scarily long way away, just saying.

Range:            19100  to  21300     or     21300  to  21500 

Activity:          Moderate

Type:              Bullish