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

Yesterday certainly rattled the SPX cage as we at last have some ratio movement.

It does look far more dramatic than it is courtesy of losing Y1 below the zone, but the obvious strengthening of the ratio here is a bullish sign.

The most important move however is R1 slipping to 2535 this market having tested it at 2530 yesterday getting as high as 2529.23.

Having just changed it will still pack a punch being just below the threshold, but the weakening of the ratio above the zone is also a bullish sign.

So bullish signs but whether they are convinced enough to take on the R ratios is the $100 question, and nothing so far this expiry to suggest they are but nothing like a decent test to force the hands out onto the table.


Range:            2480  to  (2530) / 2535

Activity           Moderate

Type:              On balance bearish


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The NDX evidently does not want to give up its spotlight so it too has waded in with a surprise NZ move, which changes their ratio landscape considerably.

The new zone is obvious enough and it will make for a rather crucial open today.

However below the zone the ratios are bizarrely easier with both Y2 and R1 giving ground which is rather unusual when the zone moves up.

Above the new zone the ratios are conventionally easier, although R1 hasn’t actually moved, but more importantly this relegates 6025 back to being just a step-up, albeit a rather large step.


Range:            5925  to  5975      or        5975  to  6075

Activity:          Moderate

Type:              On balance bearish



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Very exciting times for the DJX and are we going to actually see the return of the prodigal?

And if the SPX’s cage was rattled here it was measured on the Richter scale and yes we have the NZ move, and to exactly where it should be.

Typically this index has stayed just above it but now it is so close we suspect the remainder of this week is going to be very revealing.


Range:            22300  to  22500      or        22500  to  22900 

Activity:          Good

Type:              Bearish


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October 3rd, 2017 by