By the end of the day the SPX looked comfortable above Y2 but again in the morning it struggled for at least the first hour or so.
Again once it broke through it came back to 2505 for confirmation which again provided a strong signal, at least for the scalpers.
However it is altogether unconvincing and it really should not be having this much trouble with a Y ratio, but next stop R1.
Range: 2480 to 2530
Type: On balance bearish
Yesterday was probably the quietest day in the NDX so far this expiry as nestled into its zone.
Although technically it was a NZ bandwidth test on Wednesday we didn’t think it would breakout yesterday as it was more by default caused by it getting back into the safety of its zone rather than a result of being in it and testing the boundaries.
Although now the market is very familiar with 5900 and knows about the upper boundary as well having tested it comprehensively on the way down (high this expiry 6012.95) so each level is already way past the strike 3 rule.
Range: 5900 to 5950
It is neck and neck as we enter the home straight in the DJX with the rank outsider 21900-22100 charging up on the inside but the firm favourite 22300-22500 has seen the danger and has responded.
And sadly this is about as exciting as it gets in this index, however don’t be fooled as the DJX is going to be a major player we suspect over the closing quarter of 2017.
Basically it has been an outright bull, and especially in the first quarter, taking this market into ratio levels it had previously been too scared to even face and all on the back of Trump’s tax plan.
Now this is finite or tangible hopefully this market will return to normal, and you never know it might even get reacquainted with its zone once in a while.
Range: 21900 to 22700
Activity: Did not register