SPX , NDX & DJX Ratio Table 8th March 2018
It has only been a day since we last looked at the US but as the rollover starts next week we thought we would get one last look at the mighty March in this format.
As one can see in the SPX there hasn’t been a great deal of change in the ratios, and what there has been is more of an alignment or establishing uniformity.
This index (and the DJX) visited its zone yesterday, and spent some time there, so finishing back above it is significant and bullish.
And as we forecast, the troubles of the week before were caused by the DJX, as here in the SPX it remains a bullish outlook, in fact so much so we would fully expect to see the zone move to 2720-2730, and there is even the chance it may jump to 2745-2755.
After Tues high of 2732.08 and yesterday’s 2730.60 then if it goes back today this would be strike 3 of Y2 and hence why it is not included in our trading range today.
If it gets its way, which will depend on the DJX, and (big and) the ratios start receding then 2800 could easily be on the cards.
Range: 2705 to 2755
Type: On balance only just bearish
The NDX didn’t even join the other two in visiting its zone yesterday, so perhaps not as correlated as it was last week.
At the end of the day it still has no R ratios and therefore can do what it pleases as for a normal expiry it’s a stretch to be sensitive to Y2, but for a triple this is even more unlikely.
It could be historical achieving an entire expiry without developing a single R ratio, and doing that in a triple is even more impressive, but also sad.
Range: 6875 to 6925
Type: On balance bearish
There have been no changes at all in the DJX’s ratios over the last two days.
Interestingly this is despite this level of activity, which although not high up on the scale for a triple witching expiry this is still a considerable amount.
The trouble here is that it hit R2 at 25800 then collapsed all the way down to R1 at 24200 and then finished in the middle of its zone all in one week.
So, it took 5 days to do what it should have taken 4 weeks to do, so not surprisingly they are probably thinking what else can we do.
The fact activity is what it is, and with a helping hand from the SPX, and if everything aligns then we could also see the zone here moving to 24900-25100, so this index may now actually be on the same page as the SPX.
Range: 24600 to 25400