SPX , NDX and DJX today’s ratio levels and comment

The SPX made it above Y2 at 2505 although for a very long time that was in doubt and even at the end it was hardly convincing.

However on the one hand it is a typical extra week on a 5 week expiry with the market taking baby steps, but on the other activity here has been very good.

Admittedly today it has fallen back a bit but for an intermediary this is still not bad, but with this level of engagement it is certainly not what we would call a typical extra week.

The problem is that in this expiry this index is hitting Y2 on its own as in Sept it was joined by the DJX hitting its upper boundary (nb. the markets were going the other way) but from here on in things may change as R1 is now only 8.35 points away, 0.33%.

Range:            2480  to  2515

Activity           Good

Type:              On balance just bearish

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Again the NDX was in a sort of holding pattern and having a breather after the rollover and expiry last week is perfectly understandable.

Again it didn’t go low enough (5971.17) to test the upper boundary or high enough (5998.24) to test the step-up level.

However this in now just 33.92, 0.56%, away, and so now not a dissimilar distance to their first real test as the SPX above is away from theirs.

Range:            5950  to  (6025) / 6125

Activity:          Moderate

Type:              On balance just bullish

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There have been big changes in the DJX ratios but it may well be worth remembering Y2 was at 22500 which would place the current market 130 points, 0.58%, below it, at least for today.

As you can see Y2 has now moved to 22700 and the ratios escalate very quickly from there, courtesy of bearish activity, which is not something we say a lot here nowadays.

It does therefore give this index a bit more headroom as the Y1 ratio bandwidth widens to 800 points, and although recently one would be forgiven for not remembering this, especially here, but this is a two way street.

Range:            21900  to  22700 

Activity:          Average

Type:              Bearish

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