SPX , NDX & DJX Ratio Table 5th July 2018
Always a bit tricky after a midweek holiday as for the next two days it can be a little sparsely populated.
Although for the SPX activity has held up, but it is still to make any sort of decisive move.
The intraday low this expiry so far is 2691.99, when Y2 was at 2690, which only goes to show how sensitive it is currently, but at the end of the day it has stubbornly remained below its zone and in bearish territory.
If it had bounced off one of the R ratios we would fully expect a charge to the other corresponding one, but Y2 is generally not a big enough jolt to give it that momentum, so we remain wary of whiplash and expectant of volatility.
Range: 2665 / (2695) to 2745
Type: On balance bearish
For the NDX it is still all about its zone.
Initially, just like the DJX, it had a tremendous bounce off its bottom boundary, the intraday low on 25th June being 6976.96.
It then went below and closed fractionally below it, at 6969.67 on the 27th, which so far this expiry is the closing low.
The intraday low was the next day at 6950.23.
So, it definitely has thought about joining the SPX in bear territory, but there are enough bulls remaining to make a very good fight out of it.
However, judging by the fact it is now back within its zone, these bulls do not look confident enough on their own, so they need a fair wind from the DJX before they come out to play.
Range: 6975 to 7025 or 7025 to (7225) / 7325
Activity: Very poor
There is no doubt the DJX wants to go better, if only for that rather magnificent bounce off their zones bottom boundary last week, with the intraday low of 23997.
However, it is not just that, as in the intervening period it has blatantly refused to go back to test that level, which happens more often than not, that need for confirmation.
So, to be so convinced first time round is a very good thing, but obviously the SPX is not playing along, and until it does then at the very least it will be like dragging a very heavy anchor for this index.
It still has that unique 1000-point zone to play in, so it could really take-off given a free rein, but please remember that on the other side of this bottom boundary it is only Y1, so if it doesn’t get its own way there is precious little support until 23500.
Range: 24000 to 25000