SPX outmuscled, NDX hard fight and DJX big bounce off R3 at 24100. Today’s levels.

SPX , NDX and DJX Ratio Table 8th Dec 2017

The SPX was basically outmuscled by the DJX (see below) yesterday but credit where it is due as it certainly gave it a good go.

It did open a point easier and then struggled with R2 at 2630 for the first hour and a half before it eventually succumbed.

The only change today is DR above the zone slips to 2695 so the pertinent levels are unchanged.

However, it is the rollover next week and very soon this will have an impact and as it stands it is 60-points away, although as we said earlier in the week once the rollover starts 2595-2605 should start making a move towards being the next NZ.

Range:            2630  to  2655

Activity           Moderate

Type:              On balance just bearish

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In the NDX as we said yesterday the big test will be if it can stay inside its zone, which it did.

The high was 6333.29 so it did give it a good go at breaking out, and this figure just does not do justice to how long it stayed on the upper boundary.

No change today, so still a big test, but now the finish line is in sight with the rollover next week.

Range:            6275  to  6325

Activity:          Average

Type:              On balance fractionally bearish

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Basically, a repeat of what we said Wednesday as well as yesterday in the DJX as it still applies “if it tests it today (24100) and if it holds then that is a really big decision, even more so in light of the rollover a week today”.

And this time there was no doubt at all regarding the test of R3 at 24100 as it went as low as 24101.

It reacted like it had been given an electric shock the rebound was so emphatic.

Obviously, this has given the whole pot a stir and activity has picked up but more importantly R3 has now slipped to 24500, so ironically it has ended up in the R2 ratio bandwidth anyway.

Range:            23600  to  24500 

Activity:          Moderate

Type:              Bearish

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