DJX 24100 critical in Jan, Feb scary, rollover table, levels and comment.
For the DJX this expiry it was all about
23400, which we have covered at great length in previous articles, but once
over that hurdle and into its Y ratio bandwidth we mentioned two other hurdles
in its way.
“We call them “step-ups” and here there are two in this mammoth
Y ratio bandwidth, at 23800 and 24100”.
As yesterday’s intraday high was 24099
it is this second one that has caught our attention.
Today is the day of course, and the SPX
being anywhere in the vicinity of 2600 is job done to us, which leaves the DJX
quite a bit shy of theirs.
Now, the problem with getting over 23400
certainly held this index back, thereby increasing the disparity.
Furthermore, it is in Y ratio, so not
that painful, but 24100 is quite a hurdle, and once the SPX has had its way our
fear is that this index may look towards somewhere circa 23600 as the next
cheapest alternative to expire around come Friday.
As we have all expiry, we still feel the DJX is the kingmaker, so it will be the one to watch right to the end for sure.
to (24100) / 24400
To be fair this is now becoming bit of a
theme, the Feb DJX being like the FTSE and SPX with little or no ratio in situ
at this moment in time.
Intermediary to intermediary or not this
Pointless to speculate why, it may be
for different reasons in each market, or everyone could simply be heading for
the hills, and we don’t mean to go skiing, we just see the end result.
The fact that the Y1 ratio bandwidth
here stretches for 3700-points is bad enough, but this is not the entire story.
Basically, the zone (zero ratio) could
be from 23400 all the way up to 24600.
So huge potential for extreme volatility
This, for you, may be a good thing of
If the market blasts north no doubt the
politicians will take full advantage, but make no mistake, this index is very
vulnerable with no ratio to support it.
If it skids down to 23400, we rather doubt
the seriously minimal Y1 will have much, if any, impact, and if it then carries
on to 22900, will R1 be enough?