SPX Ratio Table update.

SPX past and present Ratio Table

To be honest we are probably as bored as you are seeing it, the comment “as we said back on….” so now the table above will show the ratio as published in our last comment, with the corresponding comment here in the first paragraph. The current ratio will be in the second column with its comment below.

The first triple witching has come around quick.

AND there is still almost 200-points of Y ratio bandwidth.

So, shock susceptibility is as huge, the only question is whether the R ratios above the zone will hold fast or start retreating.

Also, we anticipate the zone moving up to 2695-2705, the question is when?

Range:            2655  to  2755 or 2780

Activity:          Average

Type:               Neutral

Obviously, the zone has exceeded expectations, albeit had we published in the last ten trading days this further move would have been apparent, it now being at 2745-2755.

Needless to add, with the zone moving, the R ratios had to recede.

The real question is looking forward, and it is all about R1 now, as it held yesterday (intraday high 2803.12) but was severely tested on Monday with the intraday high of 2813.49.

So, it has held, but under huge pressure, and next visit would be strike 3.

Furthermore, don’t forget this is a triple, and in these biggie’s R1 doesn’t normally carry too much weight.

Having said that, the fact that this is a triple and we only go as high as R3, on both sides, is very alarming, as historically, if this index gets trending, it takes at least DR to act as moderator, and again, this holds true for both directions.

The fact that the R ratios are receding and the zone is climbing is bullish, but what we would really like to see is the ratios below the zone climbing, which they have, a bit, but the Y ratio bandwidth is still 185-points.

This is what it was back on the 13th Feb.

The fact this expiry is so underdeveloped coupled with such a ludicrously wide Y ratio bandwidth means we are exceedingly nervous.

The trading range below reflects the zone, as that should offer support.

Our only surprise is that this index isn’t whipsawing around by 2% or 3% on a daily basis, which makes us suspect that one of the other two must be interacting with their ratios.

Range:           2755  to  2805

Activity:         Moderate

Type:              On balance only just bearish

February 27th, 2019 by