The SPX is getting quite accustomed to the opening gap gambit, yesterday it was up 7.86-points but crucially above R3 at 2630.
It never once looked back either as the low of 2633.93 was also the open.
Furthermore, the old DR level at 2645 hardly held the market back at all although the actual level, 2655, was responsible for the high being 2657.74.
Today it has slipped to 2660 but the last rampant bull market (a very long time ago) is the reason why we call DR “pivotal hedge ratio level”.
Range: 2635 to 2660
It really isn’t very often we say this in the NDX but it is being the sane one at the moment, so best savour it.
In fact, considering how this index has moved and its NZ then calling this sane is also a bit bizarre.
However, the high yesterday was 6374.19, or the bottom boundary of its zone, and the fact it was in a Y1 ratio bandwidth a 50-point move is only to be expected, as per our range.
No significant changes in the ratios and we suspect today will be all about their zone, but the risk is with the other two now of course.
Range: 6150 to 6375 or 6375 to 6425
The only thing we can say about the DJX is that 24100 has today dropped to R3 and DR now starts at 24500.
However, as this index blasted through DR yesterday when it was at 24100 then this index has taken on and beaten the highest there is.
However, there is a reason why DR is called pivotal by us so as far as we are concerned Christmas cheer or not this is now an exceedingly dangerous market to be involved with.
Range: 24100 to 24500