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

The SPX never ceases to surprise where the ratios are concerned and this “extra” week is no exception.

Ordinarily the ratios should be building at this juncture, sometimes on the odd occasion and with a uniform strength of opinion activity can be one-sided but very rarely do we see so much money being taken off the table so early in an expiry.

The ratios above and below the zone have slipped although it is far more noticeable above.

If anything it makes it more likely to become volatile and as this “extra” week draws to a close so the timing is right as well.

Range:            2480  to  2530

Activity           Average

Type:              Neutral

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We did say it was a bit odd on Wednesday in the NDX this sudden appearance of bullishness to take it back out and above its zone.

No such act of defiance yesterday as it dropped back into its zone immediately after the open, although for a couple of hours mid afternoon it traded around their upper boundary but evidently lacked the fight (or money) this time round.

Now it becomes the first one this expiry to reach its NZ, which means it has a 50 point bandwidth of no ratio at all to play around in.

Range:            5900  to  5950

Activity:          Good

Type:              On balance decidedly bearish

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The DJX is still ticking over activity wise after yesterday’s meagre showing but it too is suffering from the going nowhere “extra” week.

It started well enough on Monday closing up 63 points at 22331 but since then it has added only 28 points which is nothing on such a large index.

This is made worse as since Wednesday it has been in an 800 point Y1 ratio bandwidth.

The only noteworthy aspect today is that the NZ may well change to 22200-22500 if only by the natural erosion of the ratio due to the markets stagnation, although the fact it may well keep its 300 point width is interesting.

At least if it does shift then we should get 200 point daily ranges.

Range:            21900  to  22700 

Activity:          Average

Type:              On balance only just bearish

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