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

This is the first move in R1 this week in the SPX so it did well to hold out for so long.

However, we must say that even this new level is only just clinging on to R1 and we would anticipate quite early on it slipping further to 2565.

A measure of how weak the ratios are above the zone is the fact that R3 has gone altogether, but, and although far less dramatic, the ratios are also weaker below the zone.

So, it continues to open up for the SPX but the rollover starts next week and there are the other two to consider, but left to its own devices it does look bullish here.


Range:            2505  to  2560 / 2565

Activity           Moderate

Type:              Bearish



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What we said yesterday is just as applicable today; “That was a very significant move in the NDX yesterday for two reasons.”

Firstly, the close below Y2 was hard fought so all the more meaningful for it.

Secondly, the high was 6093.75 which is close enough to be a test of the next multiple of 25.

To further complicate the issue the NZ has moved up here as well, which was always a distinct possibility up to the old “step-up” level of 6025.

So, again the open is crucial but at least the target for Wednesday is now less onerous.


Range:            6025  to  6075      or        6075  to  6225

Activity:          Moderate

Type:              Bearish



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Well we certainly didn’t see this coming as the DJX’s NZ reverts back to 22300-22500.

How significant this is will only become clear over the next couple of days as it could just be a twitch, sort of an overnight B&B and it could flip back Monday.

Or if it is genuine then 22700 loses its significance but our target for Wednesday now becomes 400-points due south.

In the meantime, there is no doubt that yesterday’s high of 22884 was a test of the R ratio so the only question is whether this was strike one or two.

But no disguising the market now knows it is there, perhaps not too sure the depth of it, so it looks like another crunch day but with the floor a lot lower now.


Range:            22500  to  22900 

Activity:          Average

Type:              On balance only just bullish


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October 13th, 2017 by