SPX , NDX and DJX Ratio Table 30th August 2017
What we said yesterday in the SPX “climate has changed it is up to them how much they will make of it” and not very much is the answer.
The low here was 2428.20 this was only down 16.04 points so they didn’t even get near to Y2 let alone any of the R ratios.
The scope is definitely there but evidently the willingness is equally definitely not there, and really the day belonged to the NDX (see below) and this index was just playing second fiddle.
However we are now almost half way through so it won’t stay asleep for much longer.
Range: 2415 to 2470
The NDX was certainly the boss yesterday and we mentioned 5825 as being a key level and it was, twice.
The open was below it (we did mention 50 points of no ratio at all) at 5785.29 and that is easily close enough to 5775, the bottom boundary, to call it a hit.
It would be even if it was during the day and the market fell 52.79 points but especially so when it’s the opening price as the vega is through the roof and any dynamic delta hedging has to be instantaneous for fear of missing the boat.
The very impressive feat was the rebound all the way back up through the zone to the upper boundary, where 5825 held it is check for quite a while.
It hasn’t attracted the players, activity only just made it onto our scale, but it is in play mode and still lots of Y1 ratio as a playground.
The only concern is the new NZ has not consolidated its position yet, after 4 days as well, so it could easily rebound to 5875-5925 once again leaving this market in bear territory.
Range: 5825 to 5975
Activity: Very poor
Activity has been the key in the DJX for a while now and today it is better but still nothing to get excited about.
The low here was 21673 so nowhere near the all important 21600 (again) which just underlines that it was the NDX ruling the show yesterday.
The low here was 0.62% and in the SPX it was 0.60% whereas in the NDX it was 0.91% and if the DJX had fallen by as much it would have taken them down to 21608.
In fact had the SPX fallen by the same then that would have been 2422 or a test of Y2, but the immediate and decisive reaction from the open by the NDX made both of these unnecessary.
Range: 21600 to 22400