NDX/SPX Spread Trying to Bottom!

Discussion in 'Trading' started by Landis82, Aug 29, 2006.

  1. It looks as if the NDX/SPX spread is trying to bottom.
    The spread is currently trading at 1.206

    There is strong resistance between 1.23 and 1.24 on the spread chart . . . but should the NDX begin to outperform, we could easily see a challenge of the 1.35 area which is where the spread has topped on three separate occassions ( 1/04, 12/04, and 1/06 ).

    NDU6 could lead as hot money looks for beta and the economic conditions favor these names. Healthcare could perform well during a slowdown and technology faces a strong seasonal pattern.

    Definitely something to watch for!
     
  2. rosy2

    rosy2

    agreed. it was going down real well for a long time. easy pickings
     
  3. How are you calculating the spread?