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

So far every day this week the SPX high has been R1, literally to a decimal point, as it has slipped back.

Great for us as it is a perfect example of the ratio in action although we would be the first to admit it is a tad boring.

Exactly the same scenario again today but no changes below the zone, and the persistent weakness above now brings 2495-2505 into the frame as the next NZ.

However the most important aspect is what this behaviour reveals about this index and it is obviously happy going higher and not a bear in sight, otherwise they would seize on the opportunity when the market hits R1, but conversely the bulls are not paying to get through R1 and so it’s on repeat until one of the others change the picture we feel.


Range:            2480  to  (2540) / 2545

Activity           Moderate

Type:              On balance bearish



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Again yesterday the NDX was all about the negative as for the second day in a row it has tested the upper boundary of its NZ.

On Tuesday the low was 5976.65 and yesterday it was 5976.12 so if it goes back there again today that would be strike 3.

Two other noteworthy aspects in this index and the first is tremendous activity, which also suggests they think something is imminent, and interestingly it is the opposite of the DJX.

Secondly they have thrown into the mix some new strikes, why beats us especially as they are 400 points away from the current level, bizarre.


Range:            5975  to  (6025) / 6075

Activity:          Very strong

Type:              On balance definitely bearish



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No change in the DJX today but we suspect it will still be the catalyst for all the markets, and quite possibly today as well.

Basically activity is of such magnitude and one sided that if anything is going to kick off then this suggests it is imminent.

It is still about 1% to get to the R ratios here so if they do force the pace it will be the other two that hit their levels first, assuming the NDX doesn’t have intentions of its own of course, so it could be a grandstand end to the week.


Range:            22500  to  22900 

Activity:          Very strong

Type:              Bullish


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October 5th, 2017 by