The problem is that the day the SPX comes out to play everybody else is heading in for tea.
For us that is essentially what happened yesterday and this index didn’t even manage to continue tailgating R1, only getting as high as 2551.82.
The only ratios to change are DR below the zone and R3 above it and activity suggests today that after yesterday having set the scene so well they are now rather disappointed.
However, just like Europe, this index is easily capable of some serious moves, and if the ratios above the zone resume their retreat it could be either way.
Range: 2505 to 2555
Activity Very poor
There was no doubt in the NDX as their low was 6051.32 which was definitely a test of Y2 and the bottom of our trading range.
This makes today’s open crucial and the reason why we have two ranges as depending on where it opens dictates which range it will be in.
As it stands it now know that every time it tries to move ahead it faces battling through Y2 and now it also knows where the bottom is, so decision time.
Please note that here activity has remained high and still very one-sided so plenty of interest and expectation still.
Range: 5975 to 6050 or 6050 to 6200
That was very close in the DJX getting as low as 22739 but we can’t call it a test of the upper boundary.
The fact it languished in the middle of what is a very narrow trading range so it didn’t really do anyone any favours and we think activity today reflects this.
Eventually it will have to test one end or the other (or the ratios change) and we will see then whether it has re-joined the ranks of the rational.
Range: 22700 to 22900
Activity: Only just registered