SPX , NDX and DJX Ratio Table, levels and comment.

The fascinating aspect about these ratios is that the potential for something new and unseen is always present.

When we last commented on the Jan expiry in the SPX our two main themes were the continued abundance of Y ratio and the potential for a bear squeeze, and the two are not unconnected of course.

Well, the Y ratio bandwidth now stands at 310-points, truly amazing, and so a 120-point move is totally in keeping.

Very interestingly the intraday low yesterday was 2346.58, just where our old friend R3 is residing, the level that proved so effective on so many occasions in the Dec expiry.

Of course, Jan is but a couple of days old, but activity is already high, the number of strikes is one of the largest ever, and in fact we would say it is the highest number ever, so we rather doubt it is going to get quieter.

Range:            2345  to  2495

Activity           Very good

Type:              On balance only just bearish

Bizarrely it was the NDX that invented the addition of huge swathes of strikes, not to mention abnormally large positions.

And lo and behold it hasn’t even arrived at the party let alone make it to the kitchen.

And just to add to the weirdness here it is, after a colossal 6.16% leap, back in its zone.

It is not so much the fact that there are no R ratios at all here, but rather the fact that we don’t even see Y2 until so far out, making the Y1 ratio bandwidth a staggering 1475-points wide.

Range:            6225  to  6275 

Activity:          Average

Type:              Neutral

Again, the capacity for the ratios to surprise is in itself surprising, and for the DJX this is in three main regards.

Firstly, the total lack of any Y ratio, in stark contrast to the SPX.

Secondly, if the SPX’s level of activity was “high” then here it is tremendous.

Finally, we are back to just the 200-point zone, as this expiry also sees a very full range of strikes, with a huge amount also added since our last look.

Range:            22400  to  23400

Activity:          Very strong

Type:              On balance only just bearish