DJX critical level in Dec and will the new normal in Jan bring calm, today’s ratio rollover table, levels and comment.
Jack-hammer or pile-driver it doesn’t really matter as long as the point is, or has been, clear.
For the DJX Monday was the really big day and which just goes to prove that really the ratio calculations need to be done daily, especially at the tail end of an expiry.
Anyway, the previous Monday, 10thDec, 23900 was R3 and the DJX had just fallen 1000-points in two days to the intraday low of 23881, hitting R3 and rallying 542-points to actually finish the day in positive territory.
Today, 23900 is R2, and we just don’t know when it changed, but the new level and 23700 are R3 by the smallest possible margin, leaving DR as the far more solid level.
This makes 23600 a very critical level for the DJX, as no matter how much gloom and doom there is about the expiry the fact this market isn’t even in the Y ratios will have a major impact.
For any index players to want to sell that many futures that the amount of DR ratio dynamic delta will be buying is an extremely committed market indeed.
Well the 200-point “normal” zone didn’t do anyone much good in Dec, so here we are again with the “new normal” 1000-point one in Jan.
To be honest, a trading range of just 1000-points will seem positively dull after the last two expiries, but that is a distinct possibility.
Mind you, it has to get back into it first, which is no given, but it will make for an entertaining end to the Dec expiry, and start to this.