And decide the SPX certainly did with the help from certain results putting in the sort of day that is all too rare nowadays.
It was still less than 1% and these moves were commonplace just last year.
Anyway, it finished the week where it went at the start but with a high of 2582.98 there is no doubt this was a test of Y2, and the close above it is significant, making the open critical.
Activity suggests that involvement was reluctant at best but at least the market is now challenging some ratios so this should stimulate something or someone we hope.
Range: 2555 to 2595
Type: On balance only just bearish
Well we certainly got that one wrong as we were still crunching the derivative numbers in the NDX when the results were coming out on Friday.
In our defence we only look at the derivatives so this is not something we would take into account anyway, so when this index opened up 100.36-points at 6138.23 it blew our target of Y2 below the zone right out of the water.
Immensely ironic the close was actually right on Y2 above the zone, so it galloped all the way up through Y1 without a care.
It is a shame the DJX didn’t put on just a few more points than all 3 would be on their Y2 ratios, but this makes here and the SPX’s opens crucial.
Range: 6100 to 6200 or 6200 to 6300
Activity: Very strong
Type: On balance bearish
Very unlike the DJX to play second fiddle but that is exactly what it did on Friday.
So much so in fact it never even went close to a test of Y2 at 23500 only managing to get as high as 23449.
There are no changes to any of the ratios and little activity so it is just a wait and see situation here.
Although, it may be wise to remember that they are in an 800-point Y1 ratio bandwidth should a bit of volatility return, let alone normality.
Range: 22700 to 24000