SPX ratio decimation, NDX no spanners please and DJX unwinding?? Today’s levels, table and comment.


SPX , NDX and DJX Ratio Table 10th Jan 2018



Ratio decimation is the only way to describe it above the zone in the SPX.

Stronger ratios below the zone, weaker above it and a rising NZ are all three bullish signals neatly lined up in a row.

Our reservation comes from the fact it is ridiculously one-sided, as well as the speed of it, because in the stampede it leaves a vacuum behind it.

To compound this is the fact it is across all three indices, which multiplies the chances of a spanner being thrown into the works, but make hay while the sun shines is the saying.


Range:            2740  to  2770

Activity           Moderate

Type:              On balance only just bearish



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The NZ in the NDX has moved up again, but it is almost by default rather than by design, or more importantly by bullish momentum.

The only other change is a small tweak in R1 below the new zone that doesn’t really affect anything, even the market ended up essentially where it started.

We don’t think for one minute that this will be the last move, especially as there is still so much minimal Y1 ratio still present, and perhaps worth noting that it stretches from 6325 up to 6725, a staggering 400-points, so hopefully no airborne spanners here either.


Range:            6575  to  6725

Activity:          Average

Type:              On balance bearish



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The table nor the markets position on it hasn’t changed in the DJX but there is still a lot going on for sure.

Please note activity, and in any other expiry except this one with that abnormally enormous position distorting everything, this level in an ordinary intermediary expiry would come in as off the scale.

However, could it just be that that position is being unwound? Certainly, a possibility, and it will take neurosurgeon like skills to do that without causing a ripple or two we think.


Range:            24900  to  …… 

Activity:          Strong

Type:              Bearish



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January 10th, 2018 by