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

Again the SPX seems content going nowhere and as it is still inside a 50 point Y ratio bandwidth this is somewhat unusual.

Activity today is probably the lowest we have seen it for a very long time, by which we mean we can get this level and especially in the middle part of an expiry, but today it only just crept onto our scale it was that low.

The most obvious aspect is the continuing divergence with the DJX as so far this expiry this index has lost ground which certainly can’t be said for the other, and if or how this may correct itself.


Range:            2455  to  2505

Activity           Very poor

Type:              Bearish




Just to repeat what we said on yesterday in the NDX “interestingly if the zone does move again then the market would be inside it so a trading range of 5875 to 5925 might be well worthwhile taking a note of”.

And if you had then it would have been as the high was 5932 and the low was 5871.

Funnily enough this drop yesterday makes this index off 41.2 points so far this expiry, or 0.70%, however one might be forgiven for forgetting this index has hit Y2 when it was at 6000, getting as high as 5995.77 on Thursday 27th July.

So in fact from its high this expiry it is off 115.45 points which is almost 2%.


Range:            5575  to  5875      or      5875  to  5925

Activity:          Average

Type:              Bearish




As we mention above the SPX is down on this expiry so it is interesting to see that here the DJX is currently up 1.4% or 311 points so far this expiry, which is all not down to just Caterpillar.

However as we seem to be getting a repeat of the first quarter it may perhaps be worth noting that since the December 2016 expiry this index is currently up just over 10%, which is impressive in its own right.

Therefore back then when this index forced itself into a level it was uncomfortable with we saw it stuck within a 100 point range dependent on where it opened.

For example yesterday it opened at 21863 so our range would be 21800 to 21900, and although the low was 21861 the high was 21929, so therefore we feel today’s open will be critical.


Range:            21700  to  22200 

Activity:          Moderate

Type:              Bearish

August 1st, 2017 by