SPX , NDX but it’s all about the DJX, today’s Ratio Table, levels and comment.

SPX, NDX & DJX Ratio Table 4th January 2019

Well, you can’t say you weren’t expecting a wild ride.

Of course, the ratios should be calculated daily, but nevertheless because of their current alignment this is not so important in the SPX as it’s all about the Y ratio bandwidth.

For good housekeeping, this index has already tested R3, back on the 26th Dec when it was at 2345 and the intraday low was 2346.58, and very significantly, on the very last trading day of 2018, the market closed at 2506.85, which in these volatile markets is the closest you will get to hitting its zone.

Also, significant, was in our last table R1 was at 2445, so is still a step-up, and yesterday’s intraday low was 2443.96.

The ratios are as in the table above, but the truly unprecedented magnitude of the Y ratio bandwidth remains virtually unchanged, at the colossal 305-points.


Range:            2420  to  2495

Activity           Poor

Type:              On balance only just bullish

When we last commented on the NDX it had recovered all the way back to its zone, which on the end of a 6.16% move was very impressive indeed.

However, this meant on the last trading day of 2018 it was actually above its zone, and, in fact, the intraday low was 6273.94, which was a bounce off the upper boundary of its zone.

When you appreciate this, and then read our comments regarding the DJX, the significance of 23400 becomes even more meaningful.

Especially, as both here and the SPX, were above their zones, and with so much Y ratio above them it could have been a very different story indeed on Wednesday, which may in turn have given a far closer line of support yesterday.

On which subject, the open here yesterday was 6274.76, which should have a very familiar ring to it.

Otherwise, not a lot else has changed, apart from the addition of another vast swathe of strikes, which, as usual, hasn’t resulted in any activity, which in turns begs the question of why bother?

Range:            5650  to  6225 

Activity:          Poor

Type:              On balance bearish

Hooray, we have some Y ratio in the DJX at last.

The big question is whether or not this means it is going to join the party?

At the moment it is definitely the “party-pooper” as at the end of 2018 it was the only index we cover not to be anywhere near its zone.

In fact, it went one better, as on the first day of trading in 2019 the intraday high was 23413, which was then R2, and which evidently brought an abrupt halt to any hint of a recovery, moreover this malaise eventually affected the other two.

If it does get its act together, and joins the other two on the same page, then we should see the zone here drop, and it could drop to 23400-23600.

This now makes 23400 doubly more significant, as not only is it the last barrier before this market gets into its Y ratios, it could also potentially be its zone bottom boundary.

And, the good news is that there is still two more weeks to go.

Range:            22400  to  23400

Activity:          Moderate

Type:              Not bearish

January 4th, 2019 by