Nice to see the SPX being a bit more proactive and rather than stop as soon as it encounters R1 yesterday saw it push past for the first time, and stay above.
To be fair the ratios above the zone have been in full retreat so it’s not as brave as it seems, but it does show a greater degree of boldness.
Needless to say, again today it has slipped, but R2 very importantly hasn’t, so they are now neighbours, and this may well come as a surprise.
Worth noting that today it is not just one-way traffic as below the zone we see the return of Y1.
Range: 2480 to 2555
Activity Very poor
The raw data does not do justice to how hard the NDX had to fight to get over our step-up level of 6025.
It really was quite a titanic battle made all the more interesting as at that time the DJX was heading south.
Anyway, the winner is obvious but we have seen the ratios strengthen above the zone, and for that matter below, but the end result is the market and Y2 have passed both going in opposite directions.
This makes today’s open crucial and also how willing this index will now be in the Y2 ratio bandwidth?
Range: 5975 to 6050 or 6050 to 6200
Type: On balance only just bullish
It was quite a strange start to yesterday as initially the DJX fell, and quite dramatically so, and to compound things the opposite happened in the NDX.
Of course, we were the other way around in both but after this shaky start the market soon continued on its normal course.
It does have Y2 dead ahead but of course it is the R ratio that concerns us more and basically this will decide whether or not this index is going to return to normal.
Range: 22500 to 22900