With the SPX being in the middle of such a wide Y1 ratio bandwidth big moves should come as no surprise, to those whom follow the ratios of course.
However it seems the market itself has been taken by surprise as activity is what can only be described as the bare minimum without qualifying as a “did not register” and at this stage in an expiry which is also a triple then this is rather odd to say the least.
Of course adding to the confusion was not one but 2 levels signalling their intent to become the next NZ and the fact that neither has.
This has changed today with 2420-2430 now way out in front with the finish line in sight, although this is very probably not what the market wants to see.
Range: 2395 to 2470
Activity Very poor
We have placed the NDX inside its NZ even though it is still 1.67 points adrift of it but after yesterdays huge performance we thought this might be just a little mean, and it does better reflect the whereabouts this index is in relation to the ratios.
Of course depending on the open but even a small positive one would give it 50 points of zero ratio immediately above it.
Although activity has slipped back there are still no major changes in any of the ratios, so this is becoming rather a concern now, as is the fact there is no masking 5775-5825 is definitely making a play to be the next NZ.
Range: 5625 to 5875 or 5875 to 5925
Type: On balance bullish
If anything for the DJX it is more applicable here than what we say in the SPX basically because this index is in the middle of an 800 point Y ratio bandwidth.
Furthermore Y1 appearing in the middle of it throws up the possibility of the NZ here moving to 21900-22100, in total contrast to the direction the SPX’s is likely to move.
The only thing for certain is when this index hit 21600 on Monday the support given by the top boundary of the current NZ was more than enough to stimulate the bulls into rallying 300 points, so they are certainly keen but it could boil down to whether or not they are willing to be in the fight on their own?
Range: 21600 to 22400