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

We did think here we go again in the SPX as they powered to a couple of points past Y2 and then gave in, crumbling all the way back to 2495.91.

It then settled around the big figure and we thought that was it for the day but it came alive in the last hour or so and tried again but this time held its ground.

Basically it’s a lot of effort for just Y2 so it shows how hard it has to work, but at the same time any knock back is not shaking out sellers.

So no fear and scarce buyers and judging by today’s activity it will very probably be a rinse and repeat.


Range:            2480  to  2530

Activity           Very poor

Type:              On balance bullish


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Well they wanted to go again and also knew what was required in the NDX as the open was 5912.96 up 31.62 points but far more importantly it was above the bottom boundary.

In fact the low was 5900.35 and as we have seen over the last three trading days this test and it holding has been and was a strong signal.

But the fun did not stop there as the high was 5957.75 which was a solid test of the upper boundary, and this of course makes yesterday a NZ bandwidth test.

Again, thank goodness for the NDX as it’s the only one playing the game at the moment, even today being the one with decent activity.

Ordinarily we would say after a bandwidth test to expect a breakout but this time we suspect just getting back to its zone might have been the aim all along.

Interestingly both Y2’s have come in, and to levels that should be recognisable.


Range:            5900  to  5950

Activity:          Very strong

Type:              On balance only just bearish



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No surprise with any change in the DJX ratios, but here it is all about the possible move in its NZ rather than moving ratios.

And it is bit of a dark horse that has crept up on the outside unnoticed and today 21900-22100 is looking the most likely candidate.

This would still be below the current market but hopefully it will act more like a catalyst rather than the target it should be, which of course this index has ignored all year so far.

However now we have got details of this much awaited tax bonanza this index may now return to normality.


Range:            21900  to  22700 

Activity:          Moderate

Type:              Neutral


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September 28th, 2017 by