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

On Friday in the SPX we said “the bearish news is 2445-2555 is making a serious move to being the next NZ” and here we are coming back from the long weekend and wallop there it goes.

This is made all the more bizarre as it was actually inside the old zone, closing almost dead centre, and the high of 2480.32 was an almost perfect test of the upper boundary.

Overall the ratios haven’t changed it is just the NZ has moved within the Y1 ratio bandwidth, nevertheless it now takes this market into bullish territory without the need for another test of its upper boundary.

The flipside is that it is now above its zone and where previously it dragged the market up by default now the default position is gravitational.


Range:            2455  to  (2480) / 2485

Activity           Poor

Type:              On balance bearish



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The question posed on Friday in the NDX was how committed the bulls were now they were into Y2 ratio and the derivative players were noticeable by their absence.

Closing virtually unchanged pretty much answers this question but there was a lot more going on under the surface, most notable of which for us is the return of activity.

However it is worth noting that the open was 6001.82 and the low was 5972.27 (or Y2) and if there is a lack of commitment this is what we would expect to see.


Range:            5975  to  6100

Activity:          Good

Type:              On balance bearish



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Activity in the DJX hasn’t really got going despite this being a triple but it has nevertheless resolutely stayed above its zone all expiry so far.

There was of course that test of its upper boundary on the very first day, the low being 21600 on the 21st August, but that is the lowest it has been.

However the one change in the ratios today is R1 above the zone comes in slightly, which also narrows our trading range, and neatly highlights that this index is now at the top of a 500 point Y2 ratio bandwidth.


Range:            21600  to  22100 

Activity:          Very poor

Type:              Not bullish

September 5th, 2017 by